Qualifying for a mortgage loan can be a very stressful process.
Most people applying for a loan for the first time do not realize how their paying habits, employment history, ability to save money, etc. affect their ability to qualify for a loan.
Generally speaking, the qualifying process as it relates to the borrower’s income, credit, employment history, etc. is the same for any type of loan- be it a house loan, car loan, credit card, etc.
So even if you are not in the market for a mortgage loan, this section will give you “heads up” on how to help yourself to become an “easy loan/credit qualifying applicant.
Most Brokers/Lenders/Credit Unions etc. will want you to complete the loan application in great detail.
Sometimes this form can be over 4 pages (double sided) on legal size paper which at first glance looks exhaustive. Well I would like to tell you it really isn’t exhaustive, but it is AND the completion of the application form is probably one of the MOST important documents you will complete for the lending institution.
RULE OF THUMB:
- Complete this application form as completely and accurately as you can. Provide all the details it requires such as employment address’, bank address’,’, debt account address’,’, etc.
- Sign and initial where indicated on the forms
- Provide as much supporting documentation as you can that will help speed of the loan process and clear up any discrepancies, i.e. recent pay stubs, copies of your canceled checks for mortgage/rental payments for the last 12 months, copies of your bank statements for the most recent three months, etc.
- Explain in writing with the date and your signature for any late payment ratings and/or to clear up any confusion with employment history, etc.
Remember- EVERYTHING on your loan application WILL BE verified by a loan processor in some fashion. The loan processor may make verbal verifications or may send a written verification request such as verifications – of employment; deposits, rental/mortgage history, etc.
And in some cases, especially when this is some confusion with the paper work versus what was added on the loan application, the Loan Underwriter may require additional verification.
Lenders are in the business to make solid loans to qualified borrowers. As each person is different so is the qualifying process for that person. Be patient and supply the documentation required as quickly as you can.
The faster you provide the documentation requested, the faster you will receive a loan determination!
Review the Determining your Credit Grade, FICO Scores, and Bankruptcy sections to obtain a better understanding on how your paying habits impact your loan qualification.
The Loan Process section explains the loan process in great detail from beginning to end. This is a good source to help you to become comfortable with the process and help ease frustration and anxiety.