Mortgage Application
A mortgage application can be intimidating at first glance, but isn't as hard as it looks so long as you take it step by step. A loan officer will help you complete the application and you should ask the loan officer about anything that may be unclear to you. Your loan officer may interview in person or take the application over the phone. Once complete, you will sign the application and submit it to your loan officer.
Also known as a Uniform Residential Loan Application, the purpose of this standard form is to collect detailed information about your income, assets and liabilities, as well as a description of the property you wish to purchase. It includes details about pending construction costs if the house is yet to be built, and also your purpose in buying the property, i.e. primary residence, secondary residence or investment. If you are refinancing it also asks the reason for refinancing -- to change the rate and term of the mortgage or to use equity to get additional cash.
The application first asks you to document the type of mortgage for which you're applying and the terms of the loan. You will then be required to fill out information about the location and type of property, and the purpose of the loan -- for example, whether it is a purchase, refinance or a construction loan.
The bulk of the application is devoted to obtaining the borrower's personal information, including marital and dependent status, employment history, income, expenses, assets and liabilities.
Finally, you'll need to indicate the details of the transaction, such as purchase price, loan amount, estimated closing costs, estimated prepaid items, fees, and other costs and credits. On this part of the form you will also be required to disclose any declarations by or against you, such as bankruptcy, lawsuits, foreclosures, defaults, alimony, child support, etc.