Application is actually the beginning of the formal loan process and usually occurs after you have found a property you want to buy or have determined that you wish to refinance the loan on your existing home. With the help of your CTX loan officer, you complete a mortgage application for a particular loan program and supply all of the required documentation for processing. Your CTX loan officer will discuss various fees, rate-lock and down payment options with you at this time, and the loan officer will deliver a Good Faith Estimate (GFE) and an initial Truth-In-Lending Disclosure (TIL) that will contain an estimated annual percentage rate (APR) within three days of the date of your application that itemize the rates and estimated costs for obtaining the loan. You may or may not lock the interest rate on your loan at this time.

The key form that you must complete is the loan application form itself (known as a ‘1003,’ from the Fannie Mae form number). The application identifies the property being financed, the borrowers, their employment information, their assets and liabilities, and other pertinent information that will support the decision on whether the borrower is financially able to maintain the payments. The property being financed is also being evaluated to see if it is adequate security for the loan. Clearly, it is vital that the loan application be complete and accurate. The next stages of the loan may go more quickly if there are no discrepancies or issues in the application.

All lenders rely on credit information from national credit repositories obtained by ordering and reviewing a credit report for all the borrowers on the application. Lenders will compare the debt information on the application to the credit report and investigate and document discrepancies are in the loan file.

Based on the information in the application, credit history (from the credit report) and other factors, your CTX loan officer will evaluate all the available loan programs to determine the best product fit for you. It is important to be working with a professional originator who understands your needs but at the same time knows the loan program guidelines and underwriting requirements to find the right program. This is why CTX recommends that you work with one of our trained professional loan officers before you make financing decisions.

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