Mortgage Application Help and Advice

Anyone who has purchased a home can tell you: Completing a mortgage application is not as fun as house hunting or choosing new curtains. Whether you're working with an online lender or a "brick and mortar" lender, the process requires a lot of detailed, personal information. You'll also undergo close scrutiny during the underwriting process. Generally, a home purchase or mortgage refinance involves more paperwork than other loans or investments.

Mortgage help experts recommend several steps before completing your application, smoothing the process and saving you time and money.

Mortgage Help: Check Your Credit

First, check your credit. When you apply for a loan or line of credit, lenders run a check to determine if you're likely to default. By checking your credit before the mortgage application process, you can identify inaccurate information or signs of identity theft, and correct these problems beforehand. Your credit is also a key factor lenders use when determining interest rates. If your credit score is affected adversely by errors, the lower score could mean a higher rate — and higher monthly payments.

Don't Lie on a Mortgage Application

Don't exaggerate on your mortgage application. If you're tempted to inflate your income or downplay your student loans or personal debt, don't do it. Lenders will scrutinize your mortgage application, checking for inconsistencies or signs of financial distress. They are trained to examine documents thoroughly to ensure you're a good risk for the loan. By completing your mortgage application accurately, you're more likely to get approved.

Understand the Mortgage Application

In addition to understanding the type of information required on a mortgage application, you should also know how your lender uses this information. Remember that a lender needs an accurate picture of your finances in order to select the right loan. In addition to pay stubs, tax returns and bank statements, your mortgage application may also require self-employment business statements and retirement and investment information. Have these documents organized to ensure a smooth process.

Mortgage Help Experts: Ask Questions!

Ask plenty of questions. For example, a mortgage application sometimes has spaces for information about previous residences and employers. You are certainly within your rights to ask if a lender will contact your past employers. Speed up this process by providing current, accurate information.

Asking questions about your mortgage application may also reveal beneficial information. For example, until she asked the lender, one first-time home buyer wasn’t aware that she could list "child support" as another income source. By including this amount, she was able to qualify for a better mortgage refinance.