Factors involved in a loan application process

Sam · Last edited by Sam on Tue Dec 06, 2005 12:17 am

There are various factors taken into account in the process of mortgage loan application. The factors involved which are considered in processing your loan application are:

Your identity: The identity of the applicant is inspected by the lender.
Your income: The amount of money you earn is directly proportional to, and determining factor for the amount of money you can borrow for home purchase. It is a general rule that you can spend 33% of your income on your mortgage, but this can change depending upon your credit history, down payment amount etc.
Your debts: The lender will look at the debt paid monthly by the applicant.
Your employment history: Lenders see a steady employment in any occupation held by the applicant.
Your credit history: A copy of your credit history is given to the lender, in the application process of loan approval. This determines your illingness to pay as a borrower.
Property's value that you want to buy or refinance.
Your financial assets and liabilities.

Easy-to-follow steps before mortgage closing

Guest

im looking for a house loan my husbands been working at his job for almost six years now, and we're newley married, we have a baby and is trying to find a nice home to raise him in, how big are our chances of getting a mortgage loan, and what kind of information does my husband have to give?

Guest

My husband has been working at his job for almost six years now, and we are trying to buy a good home to raise our son in, what kind of information do we have to give about him if we're just using his income?

Jessica · Posted: Fri Aug 05, 2005 8:47 pm Post subject: RE:

Hi Rachel
Welcome to Mortgagefit forum.

If you have a good credit score, you can be offered wide range of mortgage programs from which you will have to choose the one you can afford. Generally lenders try to verify the income of a borrower and how much debt he already has. This is mainly to find out if he is capable of repaying the loan within the specified time. Since your husband has been working for quite some time, I don't think that will be much of a problem.

Your husband will have to provide the lender with statements that will prove his present income, W-2 forms from his employer, stating his salary and tax payments for the past 2 years. He will have to state where and for how long he has been working.

He will have to provide a list of bank account numbers, the address of the bank branch and checking and savings account statements for the previous 2 to 3 months. Your husband should also state how much money he has in the bank account. He will be required to provide a list of savings bonds, stocks or investments, if any. He needs to state the reason of his taking the loan and how much of his monthly pretax income is utilized for paying any other debt.

Hope you have benefited from this information.

Please feel free to write back with further queries. Also sign up with us to get free consultation on any query.

Regards,
Jessica.

jameshogg · Posted: Tue Feb 07, 2006 1:07 pm Post subject:

I would like to add points on some additional information that the loan application form may ask a borrower to sign.

By signing that part the borrower agrees that he has provided correct information to the best of his knowledge and he will inform the lender if there is any change in the information.

You also give permission by signing this part -

To get your application verified.
To submit your account history to the credit reporting agencies.
To transfer the loan or the loan servicing to successors of the original lender.

Hope this information may help.

James

Guest

I found the last part of the loan application form asking for my race and gender. Does it influence my application?

Thanks,
Garcia

jameshogg · Posted: Tue Feb 07, 2006 1:48 pm Post subject:

Hi Garcia,

This information on race and gender doesn't have any effect on your application. In fact this information is utilized by the Federal Government to monitor the lender's obidience in maintaining fair housing and equal credit opportunity laws.

This information is voluntary and may be provided if you wish. However it is mandatory for the lender to request the information under federal law.

James

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