If you are refinancing your mortgage, it is important that you understand what set of items appear on a loan estimate. These items are essential parts of the financial reports that the mortgage company will send to your lender after you have approved the loan. The reports contain important information about your income and all of the debts that you owe. The more complete these financial reports are, the more accurate the information the lender will receive.
Most mortgage lenders use at least two different sets of financial records to calculate your mortgage loan amount. They will use your annual income, as well as several other standard factors to determine how much you can afford to borrow. For example, your loan amount may be based on your income and your debts, not your credit score. These two sets of records are called:
Your annual income is the most important part of your financial record, because it tells the lender what kind of person you are. Many mortgage companies consider people with high incomes to be less risky than those with lower incomes, so they will typically give more money to those with higher incomes. When you refinance your mortgage, the new loan agreement will specify what items appear on a loan estimate. It is important to review this list carefully, because if there are any incorrect items on this list, the lender may require that you pay additional expenses or that you refinance the mortgage. Therefore, making sure that the details on this list match up with what you have reported on your tax forms and other documents will help you avoid financial problems in the future.
The next set of financial documents that your lender will request include copies of your current bank and credit accounts. These will show what loans you have outstanding, as well as how much money you owe overall. This loan information will allow the lender to calculate how much you would cost them to lend you a specific amount of money. As you can see, your lender needs to know your financial position. They use this information to decide whether or not you are a good candidate for their loan program.
One of the last set of documents that your lender will ask you to provide is a credit report or statement. Your lender will take an inventory of all of your outstanding debts, such as credit cards, car loans, student loans, and so on. Your credit report will contain detailed information about any financial troubles you may have experienced in the past, including any collections that you have placed against your name. The report will also show how long you have held your current job, any loans that you may have applied for, and any work that you have completed outside of your company. Although you won’t usually see what sets of items appear on a loan estimate, it is still wise to review this document closely.
One final set of documents that you will need to provide are a couple of sets of photos of your personal property. A lien form is often included with a loan application, and it will request photos of your personal property. This is important because a lender will want to see at least one of these items if you are looking to finance a large home purchase. When it comes to what set of items appear on a loan estimate, there really isn’t any way to get around it.