What are the steps in the mortgage application process? Learn how to apply for mortgage loans step by step here.
RELATED: Mortgage Application Process - Step 1 and 2
Nobody likes it, but paperwork is a big, unavoidable part of the application process. Before meeting your lender, there's a lot of documents that you'll need to prepare first.
First and foremost, bring proof of your identify - Driver's license, identification card and social security card.
Next up you'll need to produce proof of income. Documents required will depend on whether you're an employee or a business owner.
If you are an employee, you will have to provide written records of your recent pay slips, bank statements,
investment account statements and retirement account statements (for the last 3 months).
If you are a business owner or self-employed, then you'll have to bring your business license, income statement and tax statements for the past 2 years.
For more details on the required document, Click here for our mortgage application documents checklist.
Once you have applied for a mortgage loan, the lender will arrange a time and place for you to meet one of their representatives.
During the meeting, you'll be expected to answer a list of questions regarding your personal finances such as your monthly income, expenses and long term financial goals. This is to evaluate your borrowing capacity and risk of default.
You'll also be required to fill in mortgage application forms and submit the supporting documents that you have prepared in Step 3 above.
They will also give you advice on the different types of mortgage loans and which one will suit your needs best. More importantly, they're required to explain all the fees that are incurred when you apply for a mortgage loan. If you have any questions on the mortgage closing costs, this is a good time to ask your broker and clarify all your doubts.
After the interview, it will typically take 30 to 60 days for the lender to give you a reply on whether your mortgage loan has been approved. Once approved, your lender will contact you to sign the mortgage agreement. This marks the end of your mortgage application process.
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