Home inspection findings by Frank Schulte-Ladbeck, Professional Real Estate Inspector TREC# 9073

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Preparing For The Loan Application

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Home America MortgageBy Rich Dansereau of Home America Mortgage and part of the Thornton Team

I am certainly fortunate that a well respected mortgage industry professional such as Rich agreed to do a guest blog. Rich is an active blogger who writes about many topics, but he is great at what he does. You can find out more about his writing and his service by going to the Thornton Team’s mortgage website. Unfortuantely for me they are not in Texas, but look at the bottom of the post to see where they do work. You should check them out.

One of the first steps you will be asked to do after choosing a lender is to complete the Uniform Residential Loan Application, also referred to in real estate parlance as the 1003. Most loan originators/officers will complete this on their computer with the information you provide while talking the phone, or direct you to a secure website where one can be completed. The 1003 is required for all mortgage loans and contains most of borrower’s important information. The information contained on the 1003 is initially unverified but can be changed as it is verified. Many companies will provide a pre-qualification letter based on this unverified information.

Most realtors prefer that a borrower be pre-approved prior to doing all the preparation work required to show potential homes to prospective buyers. In order to get pre-approved, which is a time sensitive commitment, based on verified information, that the lender is prepared to write a home loan, there are often underwriting conditions that must be cleared prior to final approval. These conditions will vary based on individual circumstances but there are several items that will invariably be requested for a full documetation loan (full documentation, a.k.a. full doc, loans will generally garner better pricing as they are less risky for the lender). Some of the most requested documents are:

  • Two
    most recent detailed (show withholdings) paystubs – these will be
    compared with the income and employment information supplied at the
    time of application.

  • Previous
    two years W-2 or tax returns (all pages – individual filings only)

  • Other
    income documentation – pension award letter, social security award
    letter, disability award letter, etc.

  • Two
    most recent month’s bank statements (checking and/or saving accounts
    – all pages) – these will be used to verify asset information,
    receipt of governmental and/or employer awards, and reserves (money
    on hand) supplied at the time of application.

  • Other
    asset documentation given at the time of application to qualify for
    the loan – 401k statements, IRA statement, stock statements, mutual
    fund statements

  • If
    you have declared bankruptcy, gotten divorced, lost a property due
    to foreclosure, or any other major event for which documentation is
    provided, these items will be necessary

Home America Mortgage holds licenses in Georgia, Alabama, Tennessee, Florida, South Carolina, Missouri and Colorado.

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3 Responses to “Preparing For The Loan Application”

  1. Alex Says:

    I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you down the road!

  2. Mr Chong Says:

    So don’t make excuses, and don’t take it out on the bank. In this situation,what happens is the loan or note holder will make an assessment as to the mortgagee ability to pay the note. I did expect this, but I can see it. This was fresh. They went ballistic.

  3. Not sure what you are getting at Mr. Chong. Do banks need to be regulated to prevent future mis-steps? Yes. Do the personnel at the branch level have it in for you? No.

© Frank Schulte-Ladbeck Professional Home Inspector Houston, Texas
Frank Theodor Schulte-Ladbeck
home inspector, TREC# 9073
Houston , Texas , 77063 United States

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