How to Fill Out a Mortgage Loan Application

A mortgage application is required to obtain a loan to purchase a home. This application, commonly known as the Uniform Residential Loan Application or Fannie Mae Form No. This will allow the lender to determine if you are a suitable candidate for a loan and what amount they will let you borrow. This form can be filled out before you even find the property that you are interested in. You can also use it to apply for a loan once you have found the property.

You might be a little nervous if you have never completed a similar form before. Don't worry; you will be working with your lender in completing the form. This guide will help you understand what you can expect when you submit a mortgage application.

Types Of Mortgage And Terms Of The Loan

With the lender's assistance, you must specify which type of loan you are interested in -- FHA or VA, conventional, USDA/Rural Housing Service, and the amount and duration of the loan.

Information About Your Property And The Purpose Of A Loan

The details of the property that you wish to purchase will be required. This includes its address, year of construction, legal description, and the number of units. Next, you'll need to explain why you are applying for the loan. Is it to buy the property, refinance the property or take out a construction loan? If the property is a mortgage or construction loan, additional information about the improvements and existing liens will be required. It is also necessary to indicate the source of the downpayment and who the title will be in.

Personal Information

If applicable, you and your co-borrower must complete your personal information. This includes your name, current address, and whether you rent, own, and previous address - if less than two years ago -- and whether you rented, owned, and Social Security number. The lender will use this information to check your credit score.

Information About Employment

If applicable, you and your co-borrower will need to list details about your employment. You will need to list the name, address, and phone number of your employer. Your job title and position. The type of business. How long have you been working in the field? You will need to provide previous employment details if you have been in the same position for less than two years. To verify your employment, your lender will call you. You will need to supply at least two years of personal and business tax returns, as well as current financial statements if you are self-employed.

Monthly Income And Combined Housing Costs

If applicable, you and your co-borrower will need to provide details about your gross income. This includes your base employment income as well as overtime, bonuses, commissions, and income from dividends, interest, and rental income. Also, your monthly housing expenses. These expenses include the current rent or mortgage payment, mortgage insurance, and taxes.

Assets and Liabilities

If applicable, you and your co-borrower will need to list what you have (your assets) as well as what you owe (your liability). Assets can include bank accounts, investments, and real estate. You will also need to list the details of each bank account, including its number and market value. Credit card balances, installment loans (i.e., student loans, boat loans, car loans), alimony, and child support are all liabilities. Include the account number, total unpaid balance, month remaining, and monthly payment amount for each account. This will allow the lender to assess your debt situation and determine the mortgage loan amount you are eligible for. In addition, the lender will analyze your cash accounts to determine if you have sufficient cash reserves and down payment funds.

Details About The Transaction

This application will include the loan details, including the purchase price, estimated closing cost, estimated prepaid items, and loan amount.

Declarations

Questions about whether or not you have declared bankruptcy in the last seven years, whether or not you have outstanding judgments against yourself, and whether or not you have had any property or loans foreclosed on or been a part of a lawsuit will require you to answer these questions. In addition, you will need to answer any questions you answered yes to.

Signatures And Final Information

This application will require you to sign in two places. First, you and your co-borrower, if applicable, must sign the application at the top. This will confirm that you have read and understood the terms. The lender will also need to verify that the income and assets of the co-borrower are being used in determining loan details. Second, you and your co-borrower must sign again at the bottom of the loan request, acknowledging that the loan details are correct.

The last section of your mortgage application will ask you about your race, gender, and ethnicity. However, this information is not mandatory. Instead, the government uses this information to monitor its internal processes.