A mortgage application is a detailed process and applying for a home loan takes time, consideration, plenty of preparation and lots of paperwork. Still, with all that is involved, there are many benefits to the advances of modern technology and many can being an online mortgage application that will not only save time, but most often, will save frustration.
Once you’ve made the decision to either buy a home or refinance your current home, you can begin an online mortgage application to become preapproved. It’s important to make certain that you have all of your paperwork ready and can answer the background questions that the mortgage lender will require. Before beginning an online mortgage application ensure that you have the information needed to answer questions regarding the property you want to buy or refinance, personal information on yourself and anyone else who will be named a co-borrower on the loan, your credit information (knowing your credit history and score is helpful); your current income figures, your net worth including assets and your current level of debt. Once you begin your online mortgage application you’ll find out if you are preapproved. If you are preapproved you’ll be required to set up a meeting with the lender in order to move forward.
It’s important to be truthful and honest when conducting your online mortgage application. The preapproval process will go smoothly according to your answers, for example, it’s best to know your credit score rather than guessing it is good when it is really poor.
You should have a good working knowledge of your monthly payments especially on large ticket items that you pay for on a regular basis such as credit card payments, student loans, other personal loans, car or other motor vehicle loans and leases and any other mortgages or payments you are making on property.
When meeting with your potential lender make sure to bring photo identification and your checkbook as you will need to pay for fees associated with obtaining the loan, such as a credit check. You should also bring information regarding landlords you’ve had for at least the past two years if you’ve been in rental property. Bring at least the past three year’s worth of income tax returns to your appointment as these are used to verify your income level. Thos who are self employed should bring proof of paying their quarterly taxes in addition to their tax returns as well as balance sheets, profit and loss statements.
Other financial information that you should bring with you includes your assets such as savings accounts, Certificates of deposit, IRA’s, pension funds and checking accounts. Bring copies of your current pay stubs from your employer as well as information such as names and addresses of your employers for the past several years.
When totaling your debts make sure to include account numbers in your documentation. The amount you pay for child care should be included with your documentation detailing your financial obligations. Other loans that you have out or current loans in which you are a co-signer should be included in your list of debts.
Those who are divorced should include a copy of their divorce degree as well as verification of any property agreements and decree, and child support enforcements and agreements. Those who have previously filed bankruptcy should bring their paperwork to their meeting with the lender as well.
If you have filed an online mortgage application for a VA (Veterans Administration) loan, then you must bring in your DD-214 and Veterans Administration certification.
Ask your mortgage lender how much the fee will be for your credit report, bring at least $70.00 to specifically cover that fee.
Filing an online mortgage application is a great way to begin home ownership. You may find that by taking a class through a local HUD program you can ensure that you are thoroughly prepared for the task of home ownership.