Mortgage Loan Applications 101
To get a loan to buy a family, you ’ ll need to fill out a mortgage lotion. This application — typically called the Uniform Residential Loan Application, or Fannie Mae Form No. 1003 — will help the lender determine whether you ’ re a adept candidate for a lend and how much they ’ ll let you borrow. You can fill this form out to get pre-approved for a lend even before you find the property you want, and/or you can use it once you find the property you want and are applying to get a loan .
If you ’ ve never filled out a form like this before, you might feel a little intimidated. But don ’ metric ton concern : You will work with your lender to complete the mannequin. And this elementary guide will walk you through all the types of data that you or your lender will need to provide for a mortgage application, so you know what to expect going in.
Type of Mortgage and Terms of Loan
You, with the avail of the lender, must list which type of lend you want — FHA, VA, conventional or USDA/Rural Housing Service — the sum and length of the loan, the pastime rate and some other details about the type of mortgage and its terms.
Property Information and Purpose of Loan
You will need to write in the details of the property you want to buy — its address, the year built, the legal description of the property and the number of units in the build. then you will need to write in why you want the lend : Is it to purchase the property, a refinance, a construction loan or some early reason ? ( If the place is a refinance or construction loanword, you will need to provide extra details on the improvements you plan to make, existing liens and a few other details. ) You will besides need to list whose names the title will be in and the source of the depressed payment.
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You and your co-borrower ( if applicable ) must fill in your personal data, including your name, current address ( and whether you rent or own ), previous cover – if less than two years — ( and whether you rented or owned ), Social Security number, phone numeral, marital condition, date of birth, count of years of educate and count of dependents. The lender will use this information to run your credit report.
You and your co-borrower ( if applicable ) will need to list out details of your employment. This includes the name, address and call number of your employer ; your military position and job entitle ; the type of business ; the number of years you ’ ve held that status ; and how long you ’ ve been in that field. If you ’ ve been in that position for less than two years, you ’ ll need to fill out previous employment details a well. Your lender will call your employer to verify employment. If you are freelance, you will likely need to provide a minimum of two years ’ personal and occupation tax returns and current fiscal statements.
Monthly Income and Combined Housing Expenses
You and your co-borrower ( if applicable ) will need to include details about your megascopic income — this includes your foundation employment income, overtime, bonuses, commissions, income from dividends, matter to, rental income — and combined monthly housing expenses. These expenses include current economic rent or mortgage requital, mortgage policy, taxes and homeowners association fees — basically any expense related to caparison.
Assets and Liabilities
You and your co-borrower ( if applicable ) will need to list out what you own ( your assets ) and what you owe ( your liabilities ). Assets include bank accounts, investments, real estate of the realm, cars and businesses owned ; you will need to list out the details ( name of bank, account total ) and marketplace respect for each of these. Liabilities include recognition card balances, installation loans ( i, car loans, scholar loans, gravy boat loans ), alimony and child confirm ; for each, you will need to include history number, monthly payment amount, months left to pay and sum amateur balance. This allows the lender to analyze your current debt structure so that they can determine the come of mortgage lend that you qualify for. The lender will besides analyze your cash accounts to determine whether you have the necessity down payment sum and cash reserves required for the loanword transaction.
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Details of Transaction
The lender will write out the details of the lend — the purchase price, estimated close costs, estimated postpaid items, loan sum and early details about the loan — on this application.
You will need to answer yes or no to questions about whether you have declared bankruptcy within the past seven years, whether there are any outstanding judgments against you and whether you have had a property or loanword foreclosed upon or have been a party to a lawsuit. If you answer yes to any of these questions, you will need to provide far explanation .
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Signatures and Final Information
You will need to sign this application in two places. At the top of the application, you and the co-borrower ( if applicable ) need to sign the shape to acknowledge that you understand the terms listed at the acme of this application. You besides need to check a box to show whether or not the income or assets of the co-borrower ( if applicable ) should be used by the lender when determining the loanword details. At the bed of the lend lotion, you and your co-borrower will need to sign once again, acknowledging that all of the information provided on the lend application is true.
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On the last department of the mortgage application, you will be asked about your raceway, ethnicity and gender but are not required to provide such information. The politics uses this for its own internal monitor summons .