Mortgage Application

DEFINITION of 'Mortgage Application'

A document submitted by one or more individuals applying to borrow money to purchase a real estate property. The mortgage application contains information about the property the potential borrowers want to purchase, such as its address, year built and price, as well as financial and background information about the borrowers themselves. Lenders and underwriters use the information submitted on the mortgage application to determine whether money should be lent to the applicants and if so, how much, for how many years and at what interest rate.

BREAKING DOWN 'Mortgage Application'

The mortgage application asks for financial data on each applicant, such as net worth, employment and annual income. The application also asks for applicants' Social Security numbers, current addresses, address history and other personal information so that the applicants' identities and credit histories can be verified and examined. Supporting documents, such as bank statements and pay stubs, are often also submitted along with the application.



RELATED TERMS
  1. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  2. Variable Interest Rate

    An interest rate on a loan or security that fluctuates over time, ...
  3. Adjustable-Rate Mortgage - ARM

    A type of mortgage in which the interest rate paid on the outstanding ...
  4. Treasury Lock

    A hedging tool used to manage interest-rate risk by effectively ...
  5. Interest Rate

    The amount charged, expressed as a percentage of principal, by ...
  6. Fixed Interest Rate

    An interest rate on a liability, such as a loan or mortgage, ...
Related Articles
  1. Credit & Loans

    4 Steps To Attaining A Mortgage

    It starts with knowing your choices as well as your price range. We show you how to get there.
  2. Credit & Loans

    Mortgage Points: What's The Point?

    Learn how to pay less for your home in the long run, or save in the short run.
  3. Personal Finance

    Understanding Your Mortgage

    We walk through the steps needed to secure the best loan to finance the purchase of your home.
  4. Budgeting

    Mortgages: How Much Can You Afford?

    Answering this means number-crunching as well as factoring in other considerations and expenses.
  5. Home & Auto

    The Benefits Of Mortgage Repayment

    Buying a home may be the biggest debt you'll ever incur. Learn why you should retire it sooner, rather than later.
  6. Entrepreneurship

    The New Mortgage Business: More Than Just Loans

    Many mortgage brokers adapted to the post-subprime environment by becoming loan modification specialists.
  7. Credit & Loans

    Understanding The Mortgage Payment Structure

    We explain the calculation and payment process as well as the amortization schedule of home loans.
  8. Home & Auto

    5 Reasons Not to Use Your Home Equity Line of Credit

    Find out why taking a loan from a home equity line of credit may be a bad idea, and why you should consider alternatives.
  9. Mutual Funds & ETFs

    Trends in Capital Flows: U.S. Equities

    Analyze asset flow data for U.S. equity mutual funds and ETFs from 2014 and 2015 to identify changes in demand, investor sentiment and outlook.
  10. Credit & Loans

    Mortgage Refinance: Brick-and-Mortar vs. Online Lender

    Understand why refinancing your mortgage might benefit you, and compare using an online lender to working with a brick-and-mortar bank.
RELATED FAQS
  1. What is the 1003 mortgage application form?

    Learn about the 1003 mortgage application form, what information it requires and why this form is the industry standard for ... Read Answer >>
  2. What's the difference between short sales and foreclosures?

    Understand the difference between a short sale and a foreclosure; both result in the loss of a home, either through a sale ... Read Answer >>
  3. How do you use the FNMA selling guide?

    Learn about Fannie Mae Selling Guide and find out details about how its parts provide support to the business relationship ... Read Answer >>
  4. What is the average credit score for new homebuyers? (ELLI)

    Learn the average FICO score of approved and denied home loan applications, and find out how your credit score measures up ... Read Answer >>
  5. Is an adjustable rate mortgage (ARM) safe?

    Learn why an adjustable rate mortgage (ARM) can be a safe option as long as the borrower is familiar with the underlying ... Read Answer >>
  6. Do FHA loans require escrow accounts?

    Understand how FHA mortgages require escrow accounts for property taxes, homeowners insurance and mortgage insurance premiums ... Read Answer >>
Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  3. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  4. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  5. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  6. Economies Of Scale

    Economies of scale is the cost advantage that arises with increased output of a product. Economies of scale arise because ...
Trading Center