Description: Know what you should do prior to sending an online mortgage application to buy or refinance a home.

The ins and outs of online mortgage application

Before applying for a mortgage, you should gather the necessary information for the online mortgage application, understand what to look for once you apply and find answers to frequently asked questions.

Before starting an online mortgage application process, you should gear up by knowing the steps given below:

A) Ways to send an application  

You must choose an application method that fulfills all your requirements. You must start the application process smoothly. Mortgage advisors can guide you through the entire procedure. There are basically two methods to send an application:

1) Applying in person or over the telephone

This method lets you provide all your details to a mortgage advisor directly. This individual would take you through the application and fill it out for you on the basis of your answers.

2) Sending an online application

This allows you to provide all your financial details through the Internet. A mortgage advisor would evaluate this information and call you to talk about your following probable steps. If you make a decision to apply, then they would present the application on your behalf. 

Irrespective of which option you choose, you can make adjustments in your loan application, modifying elements like the type of loan, the amount of down payment if you’re buying a home, points paid and so on. Your mortgage advisor would reply to any questions regarding your loan or the mortgage procedure and make sure that you’re at ease with the loan features you have chosen.

B) Information checklist

No matter how you begin your online mortgage application, you’d have to provide the following information regarding every borrower:
·    Your Social Security Number
·    Your employer’s name and address and also name and address of your earlier employer if you’re working with your present employer for less than 2 years
·    Amount of your gross income, including sources of secondary income if applicable
·    Information on your assets, like the amount of your savings in banks, investment and other accounts
·    Current expenditures like housing, child support, loan and credit card payments and other obligations
·    Approximate purchase price and amount of down payment (if you are buying a home)
·    Earlier address, if you have been staying in your present residence for less than 2 years
·    Approximate value of your property and loan amount (when you are refinancing)
  
Take a printout of a comprehensive checklist you’d have to provide.

If all these details are not close at hand, don’t bother. Some of them can be collected from your credit report. Your mortgage advisor would work with you to make sure the lenders get the requisite details.

C) What happens next?

A mortgage advisor would call you for a customized mortgage discussion. You have the chance to modify details and evaluate your financing options. Your credit report and other financial details are evaluated. You might have to provide your pay stubs or bank account statements as supporting documents. If you qualify for a pre-approval, you’d receive a commitment letter for a specific loan amount, interest rate and down payment, depending on particular terms. A home appraisal might also be necessary. If your loan is sanctioned, your mortgage advisor would call you about what’s required to close your loan.

D) Frequently asked questions

You should ask the mortgage advisor the following questions:

What would happen if I have more than one co-borrower?
Is it secure to provide my details online?     
Do I have to send any documents?
What would happen if I have inadequate credit or have filed for bankruptcy?
When would somebody talk to me? 


Knowing all these four points would make sure that your application process is completed smoothly.