How Much do you Know About the Mortgage Loan Application Process?

Organize Your Papers Upfront and Speed Up the Mortgage Loan Application Process

If you’re buying your first home or real estate property, you may be surprised by how much paperwork is involved in the mortgage loan application process. If you’ve done it before, then you have a better idea of what it entails. In any event, it helps to be prepared. If you aren’t organized from the beginning, you may end up extending the process even more.

It will help if you know what documents you need. You can go online or talk to your real estate agent or lender to find out. Make a list and then create a “mortgage” file to hold everything in one central place. Some of the things you’ll probably need are:

• Mortgage application
• Credit report (you can check for errors and have them
corrected before your lender sees it)
• W-2s to verify your employment and income
• Proof of any other income i.e. tax records
• Contract for the house, including a complete description
• Appraisal letter
• List of creditors and amounts owed
• Proof of normal monthly expenses

If you can walk into the loan officer meeting with all your papers in order, it will help the mortgage loan application process go more smoothly. It wastes everyone’s time to show up unprepared.

Even if you’re not usually a well organized person, this is one time when you want to have your ducks in a row. Anything to do with real estate, including lending, is very competitive. You need to be well prepared at each step so that you don’t lose out on a home you really want.

Another thing to do for yourself is go through the home loan prequalification process. Instead of finding a house you like and applying for financing, find out how much you’re able to borrow and at what interest rate. This way you won’t waste time looking at homes you couldn’t afford to buy and your loan will be approved sooner than it would have if you wait. This can be crucial if the property is highly desirable.

You can download a home loan application form from the Internet or obtain one from your lender before you even look at houses. Start filling it out early and there won’t be as much to do at the end. Anything you can accomplish before its crunch time will save you some headaches with the mortgage loan application process.

You won’t be able to fill out the real estate appraisal form until you know the property you want the appraiser to look at. At this stage you request a certified appraiser to place an unbiased value on the home you’d like to buy. He or she will base it on the property itself, the neighborhood where it is, and the amount comparable houses in the area are selling for.

Once you’ve submitted your application and accompanying back-up documentation, the mortgage loan application process will begin. Your loan officer will evaluate all the information you supplied and verify some of it. For instance he or she will call your creditors to check that your balance owed is the same you declared and that you’re making your payments on time. Evaluating your applications is also known as the mortgage underwriting process.

We’ll get you navigating easily through all of these forms and processes. Our focus at Phoenix-Arizona-Home-Mortgage.com is YOU. Your success is our mission..