Mortgages have made it easier for people to buy their dream houses. It is not easy for one to save for his/her dream house and this brings in the need to have the information on how online mortgage application is to be undertaken. One has two options when it comes to applying for a mortgage; either to undertake an online mortgage application or visit the lender’s premises in person. This article will highlight the steps that are to be followed when applying for a loan online in order to make it easier for one who is in need of one.
How to undertake an online mortgage application
An online mortgage application requires that one should have a social security number. One has to decide on the bank that he/she intends to borrow from. This paves way for the next step that involves visiting the banks website. It is easier for one to apply for a mortgage in a home bank that already knows the borrower as well as his/her financial history. One will be required to sign up into his/her account. In this step, one will be required to enter his/her email address and a password. However, of one does not have an account, he/she will be required to fill an online form. The online form entails an email address, password and secret question. To the secret question, one will be demanded to provide a secret answer.
After one has submitted the online mortgage application, the loan officer will contact back the applicant to giver certain required information. On the prequalification, one will be required to provide personal information, which include the borrower’s names, street address, city, state, home phone, cell phone and email address. One will also be required to provide his/her employment information. It includes one’s employment status, the company’s name, city, state and the number f years spent in that employment. When it comes to the residence, one has to indicate if he/she is renting or not as well as the amount paid per month.
Completing the online loan application
Once one has submitted the online mortgage application, one has to wait for it to be approved. This means that loan officer reviews the borrower’s credit and financial information to determine how much they are willing to lend him/her. The lender determines if the applicant qualifies for a home loan. This may be determined using the credit score, debt ratio, income and much more. This will be based on the information that one provided on the pre-qualification step. It is not obvious that one will be approved of a mortgage and this will be extended further to a second review process, which will take place later face-to-face with the loan officer.
Conclusion on the application process
In conclusion, the online mortgage application is very easy since it involves few steps. They include completing the online application, submitting the application and waiting for a pre-approval. Depending on the information that one provides online, the lender will determine if the applicant is eligible for a mortgage.