A. There are many different types of online applications. Some lenders may offer you multiple options. Some may have a short form and some may have a complete form. The mortgage application or what's commonly referred to as 1003's most likely will either be e-mailed to you or sent to you through the mail from your broker/banker.
A. Mortgage regulations say that the broker/banker has a certain amount of days to legally disclose information to you. This is determined by how the interview was taken. IE: if taken over the phone, by mail, face to face. Regardless of how the interview was taken you should still date the application. Why would you want to work with someone who is not following the rules that have been put in place by the regulators?
A. Giving your social security number is a must. Although you may think that you can call around and get rates, this is not possible without reviewing your credit. A broker/banker may be able to give you an approximate idea of what rate you may qualify for, but without having a social security number and being able to review credit no one can give you a definite interest rate.
A. While some may think it logical to submit two mortgage applications and then the mortgage broker or the loan officer with the best terms at the end wins, it really isn't fair or logical. Double dipping when it comes to charging items on your credit card while earning air miles and hotel points may be fair, but making two mortgage brokers work for one loan definitely is not.
When a mortgage application is submitted to a mortgage broker or loan officer, along with your supporting documentation, half of their work is already done. Keep in mind that these individuals usually work on commission, so if the loan doesn't close then they do not get paid. And just because your loan doesn't close certainly doesn't mean that they haven't already spent money by working on your application. They definitely have spent both time and money by working on your loan.
You would never hire two maids to clean your house and then only pay the one that did the better job. To be fair and equitable, you would have to pay both maids because both maids have done what they were hired to do, which is clean your house. So in the same light, you shouldn't hire two mortgage brokers or two loan officers to do a job and then only pay one either.
It also isn't a very logical approach to submit two different loan applications either. In mortgage circles, especially when you are talking about the same location, mortgage brokers tend to submit their loan packages to the same lending institutions for consideration. So just because you think that you are playing two mortgage brokers against each other, you may be coming away with the same results anyway. This reality makes it even more unfair to the individuals and lenders involved. The only way that the broker would be able to win your business in the end would be to forfeit the commission altogether and then he or she has worked for nothing anyway. Does that really seem fair?
So the moral of the story is that you should only submit a mortgage appli
A. The answer depends upon the quality of your credit and the amount of equity you have in your property. On a typical fully documented mortgage refinancing application (where an applicant is seeking to qualify based on an employee's salary), the lender will require: one month's current pay stubs, W-2's for the prior two years and bank and investment account statements for the prior 2-3 months. If an applicant is self-employed (has a 25% or greater ownership in a business) then additional documentation could be required (i.e. 1040's, 1165's, 1120's, P & L statement).
A. Most mortgage applications will ask for information regarding your employment, income, assets, debts and the prospective property you intend to purchase. Other information may be needed depending upon your situation.
A. Each state has individual laws when it comes to this. When it comes to a refinance transaction you have the option of using an attorney or using a title company as your settlement agent. Many people prefer to use a title company especially when it comes to a refinance transaction as the borrower usually has a recession period. This gives them time to review and make sure that they are getting what they were told. When it comes to a purchase it is not uncommon that a borrower gets to the closing table and then the rate has changed. Due to the time sensitive matter the purchaser is afraid to say anything or to try and correct the matter as they are in fear that they may lose the home.
A. An attorney should order title immediately. The longer they wait to order title then the longer it may take to review it. This could affect you if you locked your loan for a period of 30 days and the attorney has not ordered the title work until the 20th day. It could take 7 days to get a full title report and then the bank could still ask for other items which are relevant to the title binder. So now you are putting yourself out there to lose your rate lock, which means if the market has taken a turn for the worse then you may get stuck with a higher interest rate. If this happens it could actually affect you getting the loan as the bank may have qualified you at a certain rate and now it has changed.
A. The attorney should review your documents in full, If they are ordering title then they should be sure to review the title and make sure there is nothing that appears negative or could affect you as the new owner.
A. Absolutely. Just because a lawyer may be a friend of the family does not mean they are going to be able to do anything different then a referred lawyer who works with the broker or banker. It may actually be better to work with a referred lawyer as they have a working relationship with the broker or banker. By working together they help each others business. This way the broker or banker can be in constant communication and you the borrower do not have to worry about getting in between.