Mortgage Application Questions?

Question

I am in the middle of filling out a mortgage application, and I was wondering, when they ask for a monthly salary is that gross before taxes? Also when they ask about cars as assets, if you are currently finacing a car does this count? and if so how do you determine its value, do you use blue book value?

Answer 1

I spent over 10 years in the industry, so here's what I can offer:

Yes, monthly salary on a standard form 1003 application is intended to be gross before taxes.

Yes, list all cars (boats, RVs, motorcycles, etc.), and they will get reconciled with the appropriate loans when your credit report is pulled.

For value, you can either go to Edmunds.com or the Kelly blue book site and approximate it - you don't have to get it down to the penny or anything like that. The intent of the application to develop an ad hoc estimate of net worth isn't trying to be that exact.

Hope that helps.

Answer 2

I can help with this as I was a banker for 17 years. Yes they are asking for your gross income before taxes. Also, do not forget to include any interest you earn on savings accounts, alimony, child support, dividend income etc. as all of these count as income and on the application they have a space provided for that. AS far as an asset (car) even if there is a loan on the asset you still list it. For example, if the car is worth $15,000 and you only owe $10,000 you would list the value of the car on the asset side of the application and the $10,000 debt on the liability side of the application. As far was worth for a real estate application of the asset just estimate but you can use a blue book if you like. It really is not that important in the loan process as they are looking for income compared to overall monthly payments on a real estate loan not really how much the car is worth etc.

Answer 3

Your gross salary is before taxes. Just the blue book value of the car. If you would like I can always help you fill out a loan application. If you get stuck or looking for a better rate give me a call. I'm a loan officer with Meridian Capital Mortgage.

Frank Barragan
Meridian Capital Mortgage
909-489-4692
www.firstmeridiancapital.com

Answer 4

Yes, they want your gross or pre-tax income. The tax deductability of your mortgage interest will affect your ability to repay (it helps you, by the way!) and the lender takes all that into account when qualifying you for the loan.

When listing other assets, you do include cars that are financed but do NOT include cars that are leased. If they ask for the current value, feel free to use the current dealer's retail blue book value.

Answer 5

Gross not net, yes. Also consider any bonuses or commissions and split they annual amount, regardless of when, by 12 and add this to your standard monthly gross income. If you have considerable equity in a car (meaning its worth more than you owe or paid off), then I would put it in the asset column, otherwise the bank usually just cars about your monthly payment amount. Blue book value yes.

Answer 6

You are just building up your asset's to make a stronger file for underwriting to look at.

Your salary is gross before taxes.

You autos, put what you feel it is worth if you sold it today. It does not have to be actual, an estimate is good. if you owe15,000 than but 17,000 if it is paid for andyou got it in 1999, than put 8,000 (This is an estimate only that they are looking at, of if you have book value, you can do that....the main thing is not to stress out - ok - Have fun with the loan process.

Answer 7

different mortgage solutions exists, I have outlined some below

(I would also suggest you read : http://umgarticles.atspace.com/mortgage.htm

Pension Plan
Using a pension plan to accumulate the balance of your mortgage is a tax free saving scheme. The balance of your house will be saved over a period of time until you can pay your final balance. If you do intend to use a pension fund to save for the balance of your house, consideration should be taken into account to open another pension fund for retirement purposes too.

ISA Plan
With an ISA plan you invest in stocks and shares via an Individual Savings Account (ISA) - which is a tax-free method of saving. This method of saving may not be suitable for most borrowers. Before considering this option you should consult with an independent financial adviser.
Endowment
An endowment is still the most common type of interest only mortgage which also provides life assurance cover and a fixed payment for investment. The endowment policy along with the interest only mortgage should in effect end at the same time, leaving you with the ownership of your home and nothing to pay. Endowments have undergone much criticism; this is due to investors being promised high returns from their investments. However lately this has not been the case, borrowers have found their investments have been as good as expected and a shortfall in the end amount of invested cash will not match the amount owed on the current property.
Taking into account the recent problems that have arisen regarding endowment policies it is worth remembering that returns on endowment policies have been pretty good, however you do need to see the term out in full. Also endowments do provide life assurance as part of the actual policy, so in the unfortunate event of a death the mortgage balance is paid in full.
Advantages of an interest only mortgage
• Your investments and savings could accumulate more than the required amount to cover the final payment; this could leave you more cash for your own personal use.
• Some plans have good tax benefits and help reach the required amount it a quicker and cheaper rate.
Disadvantages of an interest only mortgage
• In the unfortunate event of your investments not acquiring the designated amount of cash to cover the loan repayment, the investor could face a shortfall which they will then need to pay. If you are worried about a shortfall on your investment, you should keep in touch with your investor and request regular updates on the situation of your endowment. If the worst comes to the worst, you can increase payments to compensate for the loss of investment.
• Cashing in your endowment, ISA or pension could have adverse effects on the amount of money you have saved over the past however many years. If you do decide to cash in any existing policies you may be subjected to a penalty, this could be a cash amount specified by the investment company/lender. Please seek professional advice if you are worried about the end results of your finances, don’t be too hasty as most policies accumulate more of the cash in the final year

for a complete informational package I suggest you visit one of the many mortgage informational sites the best free one in my opinion is :

also read http://umgarticles.atspace.com/mortgage.htm

Answer 8

examine the contract words. With maximum lenders you pay not some thing ought to you be denied the inner most loan. although, the equipment cost will connect the completed you pay. do not attempt making use of to more beneficial than one position at a time or which will sabotage both loans. personal loan brokers (not experts) furnish a much wider array of things and ought to frequently discover issues to slot your monetary profile that many larger banks can not. reliable success.

Answer 9

Stephanie, What I would like to know is why isn't your loan officer helping you out with all of this? I have seen alot of questions on here from you (not a bad thing) and it worries me that the loan officer that is supposed to taking care of this for you, is not doing his/her job. This should bother you tremendously.

If you would like to be lead through this process and given the knowledge that you NEED, then please contact me. This really is too bad that you are not getting help with this. Either that, or this is a trust factor issue with your loan officer, and that is definitely not a good thing.

If you would like some help with this and other questions that you have, then please contact me at timothy.kazee@americanhm .com and I would be more than happy to help you out with this and all issues that arise.

Good luck!