7400.362 - Family Life Management
School of Family and Consumer Sciences
Spring Semester - T-Th 10:45-12:00 Noon
Instructor: David D. Witt, Ph.D.

 Applying For a Home Loan

 Being prepared for the sheer volume of information needed to secure a home loan is an important element in successfully buying a residence. The actual process involves finding a house to buy, making an offer, finding a lender - and having good credit. Getting all those parts of the puzzle into place can be facilitated by understanding some basic rules of the home buying game.

 To improve your chances of loan approval and speed up the process, you should be aware of:

Being prepared with the information you need to give:

Take a look at what is called a Uniform Residential Loan Application. This document requires in-depth information about everyone making the loan application (you or you and your spouse). Income from all sources, credit history, a description of the property you want to purchase - everything financial about you.

    Here's the details (everything for the past two years):

A nice touch, and one that will make the bank officer's job easier (because the information is in order and because you appear very organized) is to put everything in a nice binder - complete with tabbed dividers and summaries.

Basically the lender will tally up your curent assets, income and debt.
After you have proven yourself as a reliable risk (you pay on time, you have good credit, you are employed and stable).
After that, the ratio of income to debt is really the only thing they are interested in.

The Type of Mortgage You Want
You’ll be asked to specify the type of mortgage you want and they come in a host of zany colors:

They type of mortgage you choose will have consequences for things like the monthly mortgage payment you have to make and the size of the mortgage loan you can afford to pay for.

Here are some variables you ought to know about (or - the reason banks have all the money):

Be prepared - know your stuff.