Applying for a Mortgage
Applying for a mortgage is easy. All you have to do is contact a lender (either on the phone, online, or in person) and complete a loan application. We recommend calling a lender because it only takes about 15-20 minutes to complete the loan application that way. Regardless of which lender you choose when applying for a mortgage, the mortgage loan application is the same. All lenders are required to use the Uniform Residential Loan Application. Here’s what you will need to tell the lender when you call:
The first part of the loan application is just general information about you:
- Social Security number
- Birth date
- Phone number
- Whether you are married, unmarried, or separated
- The number and ages of any dependents you have
Once we have your general information, we’ll need to know about the last two years of your housing history:
- Where you lived for the past two years
- Whether you rented or owned
- The dates you lived there
If you are currently renting, we also need to know how much you are paying in rent. It doesn’t matter how many times you moved in the past two years, and it doesn’t matter whether you rented or owned the property. If you lived rent-free, that’s fine, too. We just need to know where you lived for the past two years.
The next part of the application deals with your employment history:
- Where you worked for the past two years
- The dates you worked at each job (if there are more than one in the past two years)
- Your position at each job
- How much you currently earn
We also need to know how much your base pay is (either hourly, weekly, monthly, or annually), and whether you receive any of your pay as overtime, bonuses, or commissions.
If you are self-employed, we will need to calculate your income based on the net income (after expenses) that shows on your tax returns.
If you are retired or get disability income, we will need to know the amount you receive each month or year.
When applying for a mortgage, lenders collect information about your assets, or money that you have. We don’t need to know everything about how much you have, but we do need to know where the money for the down payment and the closing costs is coming from. We don’t need account numbers at this point, just the approximate amount you have in each account.
If you own any real estate, here’s what we need to know:
- Property address(es)
- Type of property (single family, townhouse, condo, etc.)
- Approximate value of each property
- How much you owe on it (if you have a mortgage)
- Amount you pay for homeowner’s insurance, property taxes, and HOA dues (if any) for each property
We don’t need to know much about the amounts you owe for non-real estate debts because those debts will show up on your credit report.
The last section of the loan application is a list of questions that the government requires you to answer.
There are 13 questions and they cover such things as:
- Whether you have had a bankruptcy or a foreclosure in the past 7 years
- Whether anyone is suing you
- Whether you are a US citizen or a permanent resident alien
- Whether you intend to occupy the property as your primary residence
It’s That Easy and It’s Free
That’s all there is to it. Applying for a mortgage is easy, free, and it only takes a few minutes to complete the application. Again, we recommend that you give us a call and do it over the phone. Although you may be more comfortable completing the loan application online (and you can if you’d like), it will take you much longer and we will most likely have to call you to verify some information before you can get pre-approved.
And one last thing. Never pay a lender an application fee or any money up-front. It should not cost you anything to apply for a mortgage.
If you have any questions, reach out to us, we’d be happy to help.