It is crucial to prepare and organize the required documents to complete loan processing on time. These documents may include:
These are the main sections in a standard home loan application:
Section 1: Types of Mortgage and Terms of Loan
This section needs to be left blank.
Section 2: Property Information and Purchase of Loan
If the house has been selected, fill in the address. If not, explain the purpose of taking loans, property type (primary, secondary or investment) and the source of down payment. Also, fill out other names the property will be entitled to and how the titles will be held.
Section 3: Borrower Information
Fill out your name, Social Security Number, age marital status, phone, years in school, number of children with their ages and information about present and previous employers.
Section 4: Employment Information
Mention detailed information regarding current employment and job history.
Section 5: Monthly income and combined Housing Expense Information
You can fill this section using your pay stubs.
Section 6: Assets and Liabilities
This section can be filled using your credit card and loan statements, bank statements and asset information.
Section 7: Details of Transaction
This section needs to be left blank because in most cases borrowers do not know this information.
Section 8: Declaration
The borrower is required to answer a few questions in this section.
Section 9: Acknowledgement and Agreement
The borrower needs to sign and mention the date at the bottom of the third page.
Once the home loan application is submitted, all the details filled in by the borrower are verified by the lender. This way, the loan agency will get an idea about the borrower’s financial condition and spending habits. Based on this, the lender will decide how much money the borrower should be provided as home loan. This enables the borrower to find a house in the prescribed range. Whether a borrower needs to fill the application online or in person depends on the lender’s discretion.