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Mortgage
Application Checklist
- Copy
of your Purchase and Sale Agreement
- Your
present mortgage information
- Two-year
history of employment and verification of all income
sources
- If
self-employed, copies of past two years Federal Income Tax Returns
- Information
about your checking, savings and credit card accounts
- Name,
account number and outstanding balance of each of your debts
- Application
deposits
- Information
about any assets
- Information
regarding any other assets that will be used as funds to close
- If
FHA – Copy of Social Security card and photo ID
- If
VA – Certificate of Eligibility or DD214
- If
Employee Relocation Client – Include relocation information and copy
of
offer, promissory note and copy of check on bridge loan.
Questions For
Your Lender
Are both fixed-rate and
adjustable rate mortgage loans available?
What is the interest
rate?
How long can I
“lock-in” the financing at the current interest rate?
Is a float-down lock
available in case rates drop after I have locked in?
What are the other fees
a lender may charge me in conjunction with my loan such as
points or processing
fees?
Adjustable loans:
- How
often will the interest rate be adjusted?
-
I s there a maximum limit on
each rate change?
-
How often will the monthly
payment be adjusted?
- Is
there a ceiling on payment adjustments?
- Can
the term of the loan be extended?
- What
is the maximum rate that can be charged over the life of the
loan?
-
Is there any potential for
negative amortization? (Avoid)
Is there a pre-payment
penalty clause? (Avoid, this involves extra charges for paying
off the loan before
maturity. About 80% of all loans in the United States are paid
off early.
- What
is the “grace” period? How late can a monthly payment be made
before a late
charge is assessed?
- What
will happen in a payment is missed?
Do you have to pay
“points” to get your new to get your new mortgage? Usually
lenders charge points for the cost of giving you a mortgage
loan. A “point” is 1% of the loan.
- If
you sell your house, will the new buyer (if he/she qualifies) be
able to assume your mortgage at the
same interest rate?
- Will
the lender require mortgage insurance?
- Is
the loan serviced locally or is the servicing sold?
Ask for a written “Good Faith Estimate” |
