Unformatted text preview: he information requested needs no in–depth explanation here. It should be noted, however, that complete information about any installment debts is once again required; the lender verifying the credit of the borrower or co–borrower will need this information for the credit–checking agency. At the end of the liability and assets section there is a place for the borrower and co– borrower to list all of the real estate they own. You will note that, after the address of the property, the borrower or co–borrower must state whether the property is sold, whether a sale is pending, or whether the property is being held for rental purposes. If the property is sold, the lender will require a copy of a closing statement. It the sale is pending, the lender may request a copy of the earnest money contract and will not close the loan until a copy of the closing statement is furnished, if the sale proceeds are to be used as part of the down payment or for closing costs. The next major section of the application is for previous credit references. Here the borrower will list any loans or charge accounts that have been paid in full to any credit– granting organization. Immediately below the previous credit section is an agreement the borrower and co– borrower must sign. The borrower and co–borrower at this time must declare their intent either to occupy or not to occupy the property. By signing the statement, the borrower
14-6 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 14: THE LOAN PROCESSING
and co–borrower acknowledge that they can be punished by the federal government if they knowingly make any false statement. Some of the information needed to determine if a lender is discriminating due to color, race, or sex is contained in the section entitled Information for Government Monitoring Purposes. Because this information is not used in the processing or approval of a loan, the borrower and co–borrower are not required to furnish the requested information. Form 14-1: FNMA Uniform Residential Loan Application (...
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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