The basic purpose of a mortgage application is helping the lender decide whether to lend money to the borrower or not. But when you apply for a mortgage, filling the standard Uniform Residential Loan Application is a little bit more complicated than that.
There are a total of FIVE sections in the application form and here is a section by section summary of the same, which will allow you to understand it better.
Section one: The first section describes the loan program that you wish to apply for. There are a lot of loan types available such as conventional, VA, FHA, USDA etc. It is important that you have a comprehensive discussion with your loan officer to understand which loan type will suit your financial needs and conditions the best.
Section two: This section of an offline or online mortgage application deals with the property information and purpose of the loan. If you haven’t yet decided the type of property that you wish to purchase, parts of this section will be checked as “to be determined.” The other info that you need to fill in this section includes, who will own the house, how the title will be held and the source of down payment.
Section three: This section deals with your personal info, which includes you and/or co-borrower’s full name, birth date, contact details etc. This section can be easily filled by you without any help.
Section four: The 4th section of a mortgage application deals with your employment history of two year with your present or previous company.
Section five: Last but not least section deals with your financial ability to repay the mortgage and asks for the details of your monthly income and combined housing expenses.
If there is any doubt or concerns on what the application is all about its always best to contact your friendly loan officer, JENNIFER NO, so she can guide you to the path of home ownership.