Ask Bill your personal finance question

More Than One Person Applying for a Mortgage Loan

How do three people apply for a mortgage loan?

My sister has owned a house of more than 10 years of ownership is having problems paying her loan.She got loans out of her house to start a business.One failed and one is not able to bring enough to pay her loan which tied to the house.She has other business that is not panning out.The bank is aggressive in getting the house because the property value .She filed for chapter 13 but she still need to pay the first installment.So she decides to sell the house within the family while she has control over the house. question: How can 3 indvidual be in 1 loan for a single property.Assuming the current property is value 600,000 , how do you go about the process ? I have emotional attachment to this house because I initially bought this house for my mother and has my sister took over the loan and title.

Read full question
Bill's Answer
4.2
/5.0
(6 Votes)

Bills.com | Find Learn Save

Three individuals applying for a loan to purchase a property is not very much different than just one individual applying for a home loan to do a purchase. The individuals may need to sit down with a mortgage loan officer and fill out the application for a mortgage loan. The main difference between three individuals filling out applications, and one person filling out an application, is that there is more paper work needed to submit to the bank. An experienced loan officer should be able to facilitate this process and to make it as easy as possible for all of the parties involved. Below are some tips on what you need to know about the home loan application process.

A home loan application can be very confusing for some people. If you're in the market for a home, but have never even seen a home loan application, this guide will help you better prepare for your loan application. After reading this information, you should have a better understanding of the loan process.

Itemize Your Debt

Before you do anything, you first need to establish whether or not you can afford a loan. This will save you significant time and money. To figure out if you have the finances to take on a loan, you first need to identify your debt. List your items of debt on a piece of paper. Debt means anything you can't pay off within a month, such as car payments, credit card balances, alimony, etc. Collect all paper work related to your debt and create a list of everything. Your debt will come into play when applying for a loan so you need to know and have available everything related to your debt.

List Your Recent Addresses

Part of the loan application process involves listing your previous residences. This includes apartments and times lived with any relatives. It may be difficult to recollect every location you lived, so think back as far as you can. Your resident history should be listed on your credit report, which is something you should also obtain prior to the loan application process.

Credit Report

Before you even look at a loan application, get a copy of your credit report. To get a copy of your credit report, the 3 major reporting agencies (Equifax, Experian and TransUnion) are required by law to provide you with a complimentary copy of your credit report once every 12 months per your request. However, each agency will most likely have a different score for you depending on the particular credit information provided to that particular agency. So, if you want a better idea of what your credit score actually is, request your credit score from all three agencies and figure out the average.

List Your Assets

You've already listed your debt; now it's time to list your assets. An asset is anything that has monetary value. This includes stocks, bonds, savings account funds, vehicles you own out right, and other property. Just like with your debt, collect all relevant paperwork and list out everything. Your assets are advantageous to you when applying for a loan and are referenced in the loan application.

List Your Employment History

Your employment history is also considered when applying for a loan. So you want to have all paperwork connected to your current and prior employment on hand for the application. Collect any and all W-2 forms from the last 2 to 3 years. Your employment history is looked at during the application and scrutinized based on income and any recent shifts in employment status. Any sudden or unexplained job changes within approximately six months of applying for the loan will go under a scrutinizing eye. Lenders look for solid employee history. If you've been jumping from job to job within a six month period, it shows unstable or erratic income possibilities. As a rule of thumb, stay with one job for a significant period of time six months to a year prior to applying for a loan. As with your payment habits, try not to make any sudden job changes within the 6 months to 1 year period prior to applying for the loan. Income changes look especially suspicious. If you experience a sudden dramatic increase or decrease in income be prepared to provide a full verbalor written explanation along with your paperwork.

Get Your Financial History in Order

Next you'll want to be prepared to meet any stipulations, or stips, that could come with a loan application. Frequently, this will include copies of your last three months' bank statements and pay stubs. If you are really unorganized, there are programs that let you state your income and assets, but they usually come with a slightly higher rate or more fees from a lender.

If you follow these steps prior to applying for a loan, you'll be better prepared and have the most recent, complete, and up-to-date information for your loan application. Not having all the necessary documentation and itemized lists could delay the application process or even result in you not getting the loan.

I hope this information helps you Find. Learn & Save.

Best,

Bill

www.bills.com/

Get Mortgage Rates!
4.2
/5.0
(6 Votes)

People also like to Read

Daniel Cohen

FHA Loans | FHA Loans have huge benefits, including VERY low down payments and low credit limits. Get FREE info on FHA loans... Read more >>

Betsalel Cohen

Mortgage Basics - Down-payment, Equity, and LTV | Learn about mortgage terms relating to your property's value and how it aff... Read more >>

Betsalel Cohen

Whether you are refinancing or buying a home you will ask yourself if you can afford the mortgage. Learn to prepare and evalu... Read more >>

Betsalel Cohen

Qualify for a Mortgage | You can get qualified for a mortgage and the best rates by preparing yourself. Make sure that your c... Read more >>

Betsalel Cohen

Obama Passes HARP, but borrowers are looking for HARP 3.0 Mortgage Refinance programs. When a HARP 3 update is announced, you... Read more >>

Mark Cappel

Applying for a mortgage with bad credit and a spouse isn't as difficult as you may think. Learn the what lenders look for whe... Read more >>

Betsalel Cohen

PMI | If you are looking to buy a house and take a mortgage loan with a low down payment then PMI can...... Read more >>

Brad Stroh

Refinance My Home? If you are asking 'Should I refinance my mortgage?' or 'Is refinancing my home a good?', then check out ... Read more >>

0 Comments

1500 characters remaining
loading...