What You Need to Know About the Mortgage Application Process
The Uniform Residential Loan Application is the standard Mortgage Application form written originally by Fannie Mae covering home purchase, new construction and refinance loans. It is used by all mortgage loan lenders and brokers across the US. It’s extremely important to make sure the information you provide is as accurate as possible because this application is used by the lender to access your ability to be approved for the loan.
Let’s jump into the mortgage application and explain each stage in more detail:
Section 1: Type of Mortgage and terms of loan
If you know the loan you’re applying for select the box with the loan type. If you know the loan amount minus your deposit enter the $ Amount. The interest rate should will be provided by your mortgage advisor at the time of approval, so just estimate the interest rate when entering it into section 1.
Section 2: Property Information and Purpose of Loan
Add the mailing address of the home you will be purchasing or refinancing, or simply put in TBD (To Be Determined)
Leave the legal description of subject property blank as we will pull that information for you from the title report as well as the year built.
Purpose of the loan: Self explanatory
Property will be… Make sure you disclose which of the following three options you plan to use the home for here: Primary Residence, Secondary Residence or Investment Property.
If you are wanting to apply for a construction loan this is an area that Moreira Team does not currently serve, but we would be happy to refer you to one of our major lenders.
If this is a refinance loan: Fill in the Year acquired, Original Cost, Amount of existing liens, Purpose of Refinance.
Next is the title will it be in your name (include your full legal name here)
Source of down payment: This is where you will tell the lender where the amount is coming from like a savings account, 401k, or a gift from a family member.
Section 3: Borrower Information
There are two sections to fill out here one for the borrower and the other for the co-borrower most of this section is straight forward to fill in.
Section 4: Employment information
All related information your current employment including pre-tax income for you and your co-borrower, just make sure you choose self-employed if you are. If you are self-employed you your “taxable income” after deductions and expenses.
Section 5: Monthly Income and combined housing expense information
Fill in the information from your W2 forms from your employers and detail it out individually. Add dividends and interest from stocks and add other income with details.
Use (B) for borrower and (C) for co-borrower.
Add rent, first mortgage, equity line, hazard insurance, real estate taxes, mortgage insurance , homeowner association dues.
Section 6: Assets and Liabilities
In the assets column you want to enter the name of the account and then enter the cash deposit amount you will put aside in escrow account when you open a home purchase account.
List checking and savings account below
List checking and savings account information for all accounts with liquid assets in them in this section. Liabilities will show on the right and this can be pre-populated from your credit report, so don’t worry about filling this section out. The goal here in this section is to show your total net worth.
Schedule of real estate owned. Add all related information about existing properties you currently own here, use the continuation sheet if you need to add more.
Section 7: Details of Transaction
The good faith estimate will be mostly filled in for you by the mortgage advisor you might just need to add the Purchase price.
Section 8: Declarations
Just check off the declarations section and leave the other boxes blank as your Mortgage advisor will take care of that for you.
Section 9: Acknowledgement and agreement
Electronically sign off on your document and submit to Moreira Team. Please make sure both signatures and the date are filled in.
Section 10: Information for Government monitoring purposes
You only need to fill out the first part of this section and the rest is done by the mortgage advisor who is required to fill in this information on your behalf just so though federal government can keep statistics on the loan applications. Its intent is to ensure that Fannie Mae fair practices are being made by the lender.
Uniform Residential Loan Application
Here is the link to the online application if you are ready to apply and start the process of getting pre-approved. A licensed mortgage advisor will contact you once completed.