There are a few basics to know when going through the mortgage loan application process step by step. First, there’s the initial application. Then there’s everything that happens after you have an excepted offer.
What Are the 6 Pieces of Information Mortgage Application?
When filling out the app, here are the six main pieces of information your loan officer will ask:
- Name – full legal names of all borrowers.
- Income – you’ll supply pay stubs, W2s, and taxes.
- Social Security Number – so your credit can be pulled.
- Property Address – you might not have this yet unless you’re refinancing.
- Estimated Value of Property – you might not have this either, but you can estimate how much you think the property will be worth.
- Mortgage Loan Amount sought – the same thing – you can estimate it.
Once the above is complete – your file will move through the processing department to verify everything and then onto underwriting. If you’re purchasing a home, add to that list a signed sales contract.
Does Age Matter When Applying for a Mortgage?
Surprisingly enough age doesn’t matter. You can be 80+ and still apply. What a refreshing change when being thinner, younger, and richer are the most important things to some people.
Go, grandpa – go, grandma!
What Do Banks Look at When Applying for a Mortgage?
Your ability to repay the loan, that you’re a good credit risk, and you have enough money for the down payment and closing costs.
Besides your application and credit report, one of the most important things the lender looks at is your last two months of bank statements.
Red Flags They Watch Out for Are:
- Bounced checks – that and non-sufficient fund fees (NSF) are deal killers.
- Large undocumented deposits – if you have a huge cash deposit, get ready for lots of questions.
- Regular monthly payments not disclosed on your credit report – this could show you have another obligation that has to be considered.
Just figure – no rock will be left unturned.
Mortgage Application Pre-Approval – Based on Your Answers
You’ve probably heard the saying, “garbage in – garbage out”. Although originally from the computer industry, it made a good point that a computer only processes with the data that’s input.
That brings us to the importance of an accurate mortgage application. Pity the poor borrower who gets a “pre-approval” over a 5-minute meet and greet on the phone without having to provide any documentation. That’s especially true for the self-employed. They might have the idea they make a certain amount but once they turn in their taxes with hundreds of deductions, they don’t have enough income.
So now that you know what’s essential for completing your initial mortgage loan application – we’ll add another vital piece.
You Need a Reputable Lender That Knows What They’re Doing
One of the biggest mistakes borrowers make is they only shop rate. They’ll go with an unknown lender with bad or no reviews because they can save a ¼ of a percent. Only to have that lender raise the rate at closing.
With Homestead Financial Mortgage, you can see our hundreds of 5-star reviews. Plus, our loan officers are available 7 days a week including nights and weekends. So when you’re out shopping and you find that perfect home you want to put an offer on – your loan officer will pick up when you call!
The team at Homestead makes the process of applying for a loan fast and easy. Our low-interest home loans are some of the best in the states we serve. We’re licensed in Arkansas, Colorado, Florida, Illinois, Indiana, Kansas, Kentucky, Missouri, Montana, Ohio, Oklahoma, Tennessee, Texas, and Wisconsin.