A loan application for a mortgage is a somewhat complex process. The process involves more than filling out a basic application, and this is primarily because a mortgage loan is such a large loan. If you would like to apply for a mortgage, you will need to supply the lender with other information, too. As you prepare to apply for a loan, here is a list of the information the lender will need to process the application.
The Application and Personal Finance Statement
To apply for a mortgage, you must fill out the loan application that the lender provides to you. The application is typically just a page long, and it is often in the form of a financial statement. If not, they will attach a financial statement for you to complete.
A financial statement asks you questions about two main things. First, you must list all your assets. You should start with the most valuable one and list what it is and its value. You should continue working on the list by naming every asset you own. You should include cars, RVs, cash, investment accounts, and anything else that is valuable.
Next, you must state your liabilities. A liability is a debt, and you must list every debt. If you have a car loan, write it on there. If you owe money on credit cards, list them.
When you complete the document, you must subtract the debts you owe from the assets you own to determine your net worth.
When applying for a loan, you must also provide your income information. To do this, you may need to gather up recent pay stubs and turn them in. You may also need to supply the lender with your last two tax returns.
Your Signature for Credit and Income Verification
You will also need to sign some consent forms with your application. One is for verification of income. This form gives the lender permission to check with your employer to verify that you work there and that you earn the amount of money you say you earn.
The next one is for your credit report. You must give consent to the lender to access your report to determine what your score is.
You may need additional items as well, depending on your case. Your mortgage lender will give you a list of what you must submit with your application, and you can follow that list.Share