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Banking on a Mortgage:
Mortgage Providers|
Loan Options | ARMs
| Balloon Mortgage | Downpayment
| Pre-approval &
Sales Contracts | From Application On | Predatory
Lending
From Application On...
If you have not yet been pre-approved the following steps will
need to be completed.
Mortgage Application Steps
| • |
Complete form 1003 “Uniform
Residential Loan Application” that requests your personal
information on where you have been living, your income,
debts, loan amount and property address. |
| • |
Be prepared to pay the application
fee which will prepay the appraisal and credit
report. This fee will vary from lender to lender. A customary
fee of $300 to $500 will be required. |
What's Happening Behind the Scenes?
Appraisal: A qualified appraiser will be assigned
the appraisal duties and this will establish two values: the market
value and the cost or replacement cost new value. It is important
that the market value be equal to or greater than the purchase
price you have agreed to in your ratified purchase contract.
Credit Report: Your lender will request, usually
electronically, a copy of your credit report. As we have discussed,
a tri-merged report will verify your credit history and who your
current creditors are. This should have been received in the pre-approval
process accomplished earlier.
Employment and Bank Account Verification: Most
lenders will accept your paperwork for income and balances in
your bank accounts. Be prepared to bring in current copies of
your W2 statements for the past 2 years and the most recent 30
days of pay stubs.
Documents: Your lender is required by Federal
Truth-in-Lending Laws to provide you with a number of documents
at the time of loan application. They are:
Truth-in-Lending disclosure:
A summary which discloses the total cost of the credit you are
requesting.
"A Home Buyer's Guide to Settlement Costs":
Federal booklet which discusses the settlement form HUD-1 and
what rights you have in the transaction.
ARM disclosure: If you are applying for an ARM
mortgage, your lender will have an additional booklet, the "Consumer
Handbook on Adjustable-Rate Mortgages", discussing how ARMs
work and how to expect the lender to disclose the interest changes.
Next: Predatory Lending
Mortgage Providers|
Loan Options | ARMs
| Balloon Mortgage | Downpayment
| Pre-approval &
Sales Contracts | From Application On | Predatory
Lending
|
