Step 14: Loan Application
After signing the purchase agreement, you can file a loan application with one of the mortgage lenders you have selected. Loan application approval is entirely up to the mortgage lender and it may take anywhere from 1 day to 3 or more months. If you have already pre-qualified for that mortgage amount with the same lender then the process may generally take relatively less time.
Mortgage lenders differ in terms of their documentation requirements for loan application. Some require evidence of every minor detail in the loan application and ask for originals while others require documentation that supports only certain items in the application. It is however a good practice to have all the documentation that substantiates your claim in the loan application. Some of the information they may request is illustrated below (though this is not a complete list):
- Personal Information: Name or names of persons applying for mortgage loan, current address, phone number, social security number, current and past employers and other similar personal information.
- Financial Details: Current income from all sources, benefits & added income, bonus, stocks, bank accounts, assets including cars & other vehicles, all liabilities i.e credit card debts, car payments, other debts, any bankruptcy or judgments, credit references and any other information that gives an indication of your assets or liabilities.
- Real Estate Information: Location and price of the real estate being bought, any legal data about the real estate, purchase and sale agreement and any other information about the real estate that the lender may deem appropriate.
- Real Estate Insurance Binder: In some instances, the mortgage lender may ask you to get the home insurance binder for the home you are buying. For this you will have to get your property insured by paying the insurance cost. The home insurance company in return will give you a binder that you will submit to your mortgage lender.
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