A mortgage is a type of loan you can use to buy or refinance a house. There are different types of mortgages available. Based on the financial and housing requirement, you can choose the mortgage program.
The potential borrower has to look for the right broker. The broker then helps the borrower to connect with the lender. The process of mortgage application begins with filling in the application form.
There are some standard documents that are required for mortgage approval. One of the most important things is the credit score that plays a crucial role in a mortgage approval. The income and many other factors are also considered by the lender before application approval.
Below is a list of documents that are required when you apply for a mortgage. However, every situation is unique and you may be required to provide additional documentation. So, if you are asked for more information, be cooperative and provide the information requested as soon as possible. It will help speed up the application process.
Your Property
Your Income
If self-employed or receive commission or bonus, interest/dividends, or rental income:
If you will use Alimony or Child Support to qualify:
If you receive Social Security income, Disability or VA benefits:
Source of Funds and Down Payment
Debt or Obligations
What is an Appraisal?
An Appraisal is an estimate of a property’s fair market value. It’s a document generally required (depending on the loan program) by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property. The Appraisal is performed by an “Appraiser” typically a state-licensed professional who is trained to render expert opinions concerning property values, their location, amenities, and physical conditions.
Why Get an Appraisal?
Obtaining a loan is the most common reason for ordering an Appraisal, however, there are other reasons to get one:
What are Appraisal Methods?
There are 3 common approaches, or Appraisal Methods, used by Appraisers to establish property value. After a thorough exercise of all 3, a final value estimate is correlated. When evaluating single-family, owner-occupied properties, the Sales Comparison Approach is heavily weighted by an Appraiser.
Who Owns The Appraisal?
The mortgage company owns the appraisal even though the borrower paid for it. This is because the mortgage company orders the appraisal on the borrower’s behalf, and the Appraiser lists that mortgage company on the report. The borrower does have the right to receive a copy; however, it’s the mortgage company’s discretion to give the borrower the original appraisal report.