Standard Information for a Residential Mortgage Application

House Information
The lender will ask about the loan and also the property. The bank needs to know the amount and also the terms of the loan for which you're using. It also needs information about the home that's being purchased using the funds. It's important to determine whether the value of the house that will secure the loan exceeds the quantity of the loan. Banks generally don't loan more money compared to home is worth.

Current Housing Information
You'll need to provide information about your current housing expenses (Information on Mortgage Loan) to allow them to be compared to your prospective expenses to figure out the "payment shock, " or the amount your housing payment increases. This section of the loan application lists all components of the monthly payment as well as the mortgage payment, including real estate taxes, mortgage insurance coverage and association dues. If payment shock is very high, such as 100 percent or more, the borrower should provide considerable compensating factors, such like a large down payment or excellent credit scores.

Work Information
For most types of loans, the lender will request employment information for those borrowers. As a borrower, you'll need to supply the name and address of your employer, how long you've worked there as well as your monthly income. The lender looks for a stable work history of a minimum of two years. The bank may contact the employer to verify the information provided. You'll be asked to publish recent paycheck stubs, W-2 statements and tax results.

Assets and Liabilities
You'll be asked to list values of your assets, including bank accounts, stocks, bonds, life insurance coverage, real estate and vehicles. Liability information will additionally be requested. This includes information for vehicle mortgage payments  (Information on Mortgage Loan), credit cards and child support payments. You will need to enter all your monthly payments and balances, but if you're just a few months away from paying off a debt responsibility, this debt will not be calculated in your monthly bills.

Transaction Information
The purchase price of a home is only one the main equation. The loan application includes an area to break up the transaction. To properly calculate the amount you have to borrow, all additional costs should be factored within. Fees such as private mortgage insurance, prepaid taxes and closing costs can add thousands of dollars to the final home price.