Should I Sign and Fax The Loan Application to A Broker?

Question

My broker gave me an estimate on how much it would cost to buy a mobile home (estimated at $80K) and he asked me to fill out the application and fax it to him. (A lot of personal information need to be filled out on this form). At this point, I do not know the exact amount of $$$ I have to pay. What should I do?
Is Loan Application a commitment to buy? or Just a Credit check? Can I refuse to buy this mobile home after the Loan Application is submitted?
Please advise- Thank you so much

Answer 1

I would not have my clients fax any important information over the fax UNLESS it came straight into my own fax which nobody else has access to and my client is in a tought spot where hen cant come into the office.

The reasons for this is that your personal information should be kept very safely and via fax to the general office fax is not a good idea.

If you dont know the amount of money that you have to pay, that means your broker has not given you your Good Fait Estimate which lists an estimate of all the costs incurred in the transaction. What should you do? Ask your broker to give you the list of all the costs in writting.

Is your loan application a commitment to buy? well that is a little tough to say. If your purchase contract was already accepted and your contingencies were weak then it may be a commitment to buy BUT if you have not even put in an offer on any home, you are pretty much safe to walk away if you dont feel confortable.

You can refuse to buy this property at any time if you have not put in any offer that could be accepted right away.

Good luck

Answer 2

I don't know what state you're from but here in Florida it is NOT NORMAL for a (in our state you have to be licensed) Licensed Mortgage Broker to give you a 1003 (application) & expect you to fill it out on your own and fax it back. First to do a loan all of the Mortgage Broker Businesses that I know are required to have an original application (not a faxed copy) & secondly it is the broker's job to help you fill out the application and gather all income & personal docs.

If he's only pulling your credit then all you have to do is sign a Borrower's Authorization form. Some companies have their own form that they have created on their letterhead but it should ask you basic questions (for example: name, address, s.s #, DOB, etc..)

The only thing that binds you legally to a property is a signed purchase contract. None of the documents a Mortgage Broker give you require you to purchase a home and/or stay with that broker. Did your broker give you a Good Faith Estimate? If the answer is yes then you're dealing with a broker that does not know what he/she is doing.

In order for your broker to give you an estimate on how much it would cost you to buy your property he would have had to pull your credit first to see what rates you would qualify for. You should use a broker that one of your friends, family members or co-workers have used before to purchase and/or refinance a home. Also you can shop around but remember that everytime you go to a new mortgage company each will want to pull your credit again unless you bring them a copy of the credit report the other broker pulled.

I wish you the best!

Answer 3

Mortgage financing is never a done deal until the closing documents have been signed and recorded.

An application is just that, merely an application for financing not a commitment. If you don't want the broker to pull credit tell him not to. An application does not bind you to a specific property.

I am, however, somewhat amazed that a loan officer would expect you to complete and fax back the application. That is not what I consider good service. The application process is supposed to be an opportunity for you to gather information, get your questions answered, and for your loan officer to garner the information to discern all of your financing options so that they may be explained to you and you may make an informed decision as to your choice of loan product.

Find a loan officer who is willing to spend the time with you that you deserve. This one sounds like all he cares about is how much he is going to make on your loan. You have a right to excellent customer service, demand it. If this is how he is starting out, watch out.

Answer 4

A loan application is just that, an application for credit. You are not obligated to purchase the home just by applying for the loan. That is a completely separate contract.

Faxing over a credit application is an extremely common practice in the industry, so I would not be concerned about that. It is really for your convenience and you are welcome to drive it back over if you choose to do so.

When you are actually purchasing a mobile home, you'll know it, because it will contain a small stack of forms.

Answer 5

It is not a commitment at all