A mortgage is a huge financial investment for the average person. The sheer amount of money that is being requested forces lenders to take a close look at the borrower before they will loan the money. But before lenders will even consider a loan application, they require six key pieces of information. Forget even one of these on a loan application and it will be rejected. This can have serious consequences for borrowers who may be trying to lock in to a low interest rate or who have found their dream home and are ready to buy it before they miss their chance.
Savvy real estate attorneys can help their clients avoid these situations by always making sure each of the following is included with every mortgage application they process.
Six Key Pieces of Information That Are Required on Every Loan Application
- Consumer’s Name.
- Monthly Income.
- Social Security Number.
- The Property Address.
- An Estimate of the Value of the Property.
- The Loan Amount.
If any single piece of the above information is not included the application will not be considered valid and will not be submitted for processing. Although these are the primary pieces of information that a lender needs in order to start the loan application process, it does not mean they are the only pieces of information needed. Lenders may require additional data, depending on the specific circumstances surrounding the borrowers and the loan.
Once these pieces of information have been obtained, lenders are required to provide a Loan Estimate. The Loan Estimate provides borrowers with a summary of the loan terms, estimated loan and closing costs, and additional application disclosures. Although they do not specify the final terms of the transaction, they do provide borrowers with a realistic estimate of closing costs, payment terms, and the loan structure.
Applications can be submitted in writing, electronically, or orally. If submitted orally, a written record of the event must be included. Once all six pieces of information have been received, an official Loan Estimate must be provided to the borrower within 3 business days, per CFPB rules. To proceed with the transaction, the borrower must sign and return the forms to the lender.
Don’t Miss A Step With EasyRealEstate Suite From Easysoft
Attorneys will never miss a critical piece of information that could derail the entire mortgage process when they use Easysoft’s EasyRealEstate Suite. The suite is MISMO compliant, which means loan estimate data is exported and imported safely (encrypted) into case data fields. The entire suite consists of: EasyCDF, EasyHUD, Real Estate Documents, and Easy Amortization, which includes all the software needed to manage a real estate law practice virtually error-free.