There are 6 pieces of information that are required to constitute a loan application for a mortgage lender, bank or mortgage broker. They can be provided in person, via phone, fax or email:
1) Applicant name(s)
2) Applicant(s) monthly income
3) Applicant(s) social security number(s)
4) Property address for purchase
5) Estimated purchase price of the property
6) Approximate loan amount applicant is requesting
Once all this information is provided to a lender or broker, he/she should issue a Good Faith Estimate (GFE) or estimate worksheet for you.
How do you shop around with different lenders and fulfill your legal obligation on the real estate contract to make loan application?
You may make loan application with more than one lender and get an estimate of costs - either a Good Faith Estimate (GFE) or cost estimate worksheet from each lender. You can use those estimates to compare the closing costs and fees from each lender. The estimates can also be used to choose which loan program is best for you. It is important not to delay in making a decision which lender to use once you have a signed contract on a home. Some states have a requirement that the loan application must be made within a certain period of time after the contract is signed. Even if your state does not have a time frame on the contract to complete the loan application, delaying the loan process is undesirable because it could delay the settlement or closing on your home or could be interpreted as your failure to work in good faith which can cause problems with the home's seller.
Most lenders will do a credit check when you apply for a loan or get pre-qualified so you want to be knowledgeable how multiple credit inquiries can affect your credit score if you compare multiple lenders or banks. Once you make a decision on which lender or bank to use, there will be more papers to sign and you will be in contact with the lender on a regular basis as your loan goes through the final approval process. The lender will require documentation before they can issue a final loan commitment and give you the loan.
Examples of required documentation are tax returns, pay stubs, bank statements, and a copy of the signed purchase agreement.
Amy Shair, Re/Max Real Estate Professional
Real Estate Agent serving Raleigh North Carolina
Durham NC Realtor
Homes for Sale Cary, NC
"Call Amy for your Shair of the market!"
919-818-5001
http://www.AmyShair.com
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