Shopping for a new house can be challenging but fun, especially if you're a first-time home buyer. A house in virtually any price range is a substantial investment, and a mortgage lender needs certain information about you so it can decide whether to lend you money for the purchase.
Your lender wants to know about the property you want to finance. You must provide basic information, such as the address and legal description of the property and when the house was built. You'll also need to disclose whether you plan to live in the house or use it as a rental or investment and whose name will go on the title to the property after you purchase it. If you're refinancing an existing loan, your lender needs to know why you're refinancing and how much money you need to pay off your current home loan.
Information about the borrower is a key component of a residential mortgage application. You will be asked to disclose your legal name, your date of birth, your address, your educational background and two years' worth of employment history. Your employment history includes the name and address of your employer, your job title, your income and how long you have worked in your industry or occupation. If someone else is applying for the loan with you, your co-borrower must provide similar information.
A residential mortgage application includes a section for your monthly income and combined housing expenses, including your existing rent or mortgage payment, real property taxes, insurance and homeowner association dues. The same information is required for your proposed property purchase. You must also list your income from all sources, including bonuses, commission, overtime and any other income you receive. You must provide detailed information about your assets and liabilities including whether there are outstanding judgments against you, whether you have declared bankruptcy and whether you have gone through a foreclosure.
A residential mortgage application includes a section for information about the proposed mortgage transaction, including the purchase price, the amount and source of your down payment, estimated closing costs and details about who will pay them. You may also have to provide documents that verify the information you disclosed about yourself, such as copies of tax returns or pay stubs. You may disclose information about your ethnicity, but this information is optional, and you are not required to disclose it.
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