Mortgage accounting : A comprehensive guide for the home buyers
People who want take out a mortgage loan are required to submit an application for it. This is known as mortgage application that assists lenders to evaluate a person’s worthiness to manage a loan. The process of mortgage application is quite confusing; as a result most of these applications get rejected.
Considering the fact, these people need proper real estate guidance so that they can learn about the correct way of applying for a mortgage loan.
Guide to mortgage application
This is step wise guide to proper mortgage application that has the following points:
Applicant’s personal information – Mortgage applications must include all the personal details of the future borrowers like their name, date and place of birth, age, occupation, guardian’s name, contact numbers, Social Security numbers etc.
Mortgage details – Mortgage applicants must consult a mortgage consultant for this part of their applications. It is the job of the mortgage experts to explain the type and terms of the mortgage loan that is being applied for.
Job details – The information provided in this part of the application assist the lenders to authenticate the applicant’s employment status and period of employment. Usually, lenders agree to lend out their money to those applicants who have an employment history of at least 2 years. One should be very careful while writing this information and must be very specific regarding the duration of his/her employment.
Loan objective – Lenders have reported that most of the mortgage applicants don’t even know about the property they want to purchase. They just blindly apply for a mortgage loan and think of the properties they would like to buy later on. As a result, mortgage lenders look for this information in the loan application. In addition to that, applications must have the names of the real borrower and the process of transferring the title of a property to the buyer. Moreover, lenders want to know about the source of initial payments.
Mortgage affordability – Mortgage applications should give out the information of an applicant’s mortgage loan affordability. Borrowers should submit an Internal Revenue Service Form 4506-T attested by them. This will help the lenders to access mortgage applicant’s tax file for annual income verification.
Moreover, self-employed mortgage applicants can submit their last financial year’s tax return documents as income proof to qualify for the mortgage loan.