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Application Process
The loan application process can vary from borrower to borrower and from
lender to lender. The general path is the borrower completes a loan application
with a mortgage broker or lender. That company then pulls the borrower(s)
credit report and reviews it along with the application to determine the loan
options available to the borrower or if the borrower qualifies for the specific loan
they are seeking.

If the borrower qualifies for a/the loan and wants to move forward the application
and credit are submitted to underwriting. The underwriter will create a list of
"conditions" or requirements that must be satisfied for the lender to fund the
loan. These conditions are typically proof of the information stated on your loan
application to the lender, legal disclsoures, and other misc. paperwork items.

Items such as paystub, bank statements, tax returns (if self-employed), 401K
and IRA statements, rental agreements for rental properties owned, etc... may
be required. All depending on your specifics as a borrower and the loan
program you are trying to get approved for.

Once these conditions are met then the lender will allow loan documents to be
printed and sent to escrow for signing. Once you sign them and all the other
paperwork ducks are in a row, escrow requests the funds from the lender and
the lender wires the money to them. Escrow then disperses the funds to the
agreed upon recipients and the loan and escrow are closed out and officially
complete.  


What does a lender look at to approve me?
Lenders look at three main factors in determining whether to make a loan to a
borrower.  The first is your credit history.  They want to know that you have been
a good credit risk.  Second, they look at the value of the property securing the
loan.  Lastly they look at your financial ability to assume and repay debt.

Taken together, these create a picture of a potential borrower's risk or the
likelihood they will pay back his or her loan. If the risk seems high, the lender will
be reluctant to make the loan. Depending on the degree of risk, a lender may
choose to charge higher rates and/or fees, or decline to make the loan
altogether.

What kind of information do I need to provide a lender on my
loan application?
You will need to provide credit, income, asset, and liability information, including
your income, residence, and personal identification. Save time when filling out
your application by collecting it before you begin the process.

Here's the information you'll need to have handy:

PERSONAL
Employment and salary history for the past two years
Addresses of your residences for the past two years, as well as landlords (if
applicable)
Your social security number and that of your co-borrower(s)
Birth dates of all borrowers

FINANCIAL
Your current income - this includes your base salary, any commissions or
bonuses, dividends, etc. (income from alimony, child support or separate
maintenance payment need not be revealed if you don't want it to be considered
as a basis for repaying the obligation)
Bank account names and approx. balances
Bank/investment names and approx. balances
If you are self-employed you will need to supply your federal tax returns for the
most recent year you filed and the year preceding that one (two years total),
plus a YTD P&L.

What is the decision process for a lender?
After your loan application is completed the lender will review your information in
order to assess the risk involved with your particular loan request and personal
financial situation. If you are approved you will be presented with a short list of
documents, also known as conditions, you will need to provide to allow them to
process your loan. These items will primarily include verification of your income
and possibly a request for W-2s, income tax returns, or similar information.
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