Understand Mortgage Lender Responsibilities Before Your Application Is Accepted - part 1

by John R. Blakefield

The mortgage process can be a very involved event. Future home owners often spend days, sometime months shopping lenders, looking at homes, saving for a down payment and deciding exactly how much money he or she can afford on a monthly mortgage payment.

Finding and purchasing a home is more than just a financial decision, because it involves personal attachment and investment. Buying home is often a lifetime goal for many people, so the entire mortgage process running smoothly is favored over one that is stressful and unorganized.

By understanding the information you are supposed to get from a potential lender while you are shopping, you are more likely to get the terms that you want that fit your financial information in a relatively easy and simple way.

In order to get the best mortgage for you, which may be a certain principal amount, mortgage term, or perhaps specialized such as less than 20% down towards a down payment, you must know the mortgage lender's responsibility before you apply and are accepted for the mortgage.

Mortgage lenders offer two different types of information to potential loan applicants, informal and formal. This informal and formal information is used to determine the type of loan the applicant needs and can qualify for, before the application is actually addressed.

Formal information includes pre-qualifying underwriting standards such as housing and debt ratios that are applied to the applicant's personal financial information. Mortgage lenders can provide information that indicates the maximum loan for which borrowers would qualify. This, of course, is subject to the property in question and the verification of the person's credit history, income, debt and employment.

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Understand Mortgage Lender Responsibilities Before Your Application Is Accepted

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