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Unformatted text preview: CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 14: THE LOAN PROCESSING
• Loan Costs – All costs involved should be discussed and understood by the borrower. Appraisal Report – This can be made by an employee of the lender or by an outside appraiser. The current value of the property and the value trend are needed. COMPLETING THE FNMA UNIFORM RESIDENTIAL LOAN APPLICATION
The first section of the application has to do with the type of mortgage being applied for: conventional, VA, or FHA. The interest rate and the term of the mortgage as well as the monthly payments are calculated, and finally the escrow or impounds are indicated. In the next section of the application, Subject Property, the property is identified by both a street address and a legal description. Next, the lender will need to know the purpose of the loan, whether it is to purchase, to construct, or to refinance existing financing. If the purpose is either to construct or to refinance, additional information is requested. The final portion of this section asks in whose names the title to the property will be held and in what manner the title will be held: community property, tenancy–in–common, joint tenancy, and so forth. Therefore, you will need to tell the prospective homebuyer how the title can be held and help him or her arrive at a decision, or advise them of the lender's requirements as to how the title will be held. The next sections have to do with the borrower and co–borrower. Normally, a lender will not allow the borrower to give the information for the co–borrower or vice versa. Both parties, therefore, must be present at the time of application. What information is required seems self–explanatory, but there are some important items that should be reviewed. The first is the applicant's present address. If either the borrower or co– borrower has resided at his or her present address for less than 2 years, the lender will request the prior address to establish residency for the past 2 years. If the bor...
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This note was uploaded on 12/30/2010 for the course SOC 101 taught by Professor Zhung during the Spring '10 term at Punjab Engineering College.
- Spring '10