Austin Mortgage Loans

When you apply for a mortgage in Austin, Texas, you will have to fill out the Uniform Residential Loan Application. This application is the first step in getting your mortgage loan request approved. For someone new to the process, this application may seem a little daunting at first, but it's actually easy to fill out, if you understand what is being asked of you.

Type of Mortgage

The first section asks about the mortgage you want. Is it a fixed rate or adjustable rate? Fixed rate loans have an interest rate that never changes over the life of the loan. Adjustable rate mortgages start out at one interest rate, but that rate can change over the span of the loan.

Do you want a 15 year, 20 year, or 30 year loan? While a shorter loan often seems appealing, the monthly payment is going to be higher. With a 30-year loan, you can always pay extra towards your monthly payment, but not be stuck with a higher payment if you have unexpected bills one month.

You need to know how much you plan to borrow and the current interest rate. Generally, you can find the current rates at the bank or credit union's website. Note that it takes time to approve a mortgage loan and rates fluctuate daily, so you may not get the rate you put on your application.

Property Information

The next section covers the location of the home you plan to buy, the amount it costs, and when it was constructed. You need to explain where you acquired the money you plan to use for a down payment, the names you want on the lease, and if the estate will be held in fee simple (the house and land is yours without restriction) or leasehold (the land a home sits is used by the buyer until a specific period of time passes, and then it reverts back to the original landowner).

Borrower Information

In this section, fill out your name, SSN, current address, age, education, and marital status. If you've moved in the past two years, you need to include your previous addresses. This section lead into the employment section where you list your employment details.

Assets and Liabilities

Perhaps the most important part of a mortgage application in Texas, you must list all monthly payments you make, bank accounts you hold, and any assets you have in your name, such as stocks, bonds, second homes, vehicles, and retirement accounts. Mortgage lenders want to see a debt to income of 43% or less, so it is important that you do not forget to include all debt that will show up on your credit report and all income, including child support or alimony. The assets and liabilities section continues at the end of the application.

Details of Transaction and Declarations

The Transaction section is a little harder to fill out because you may not be aware of the closing costs and fees. You should be able to come up with an estimate by using information you find on your mortgage company's website.

For declarations, make sure you answer each question honestly. If you've had a foreclosure, bankruptcy, or short sale, you need to account for it here.

Texas Mortgage Broker Act

After you've signed a mortgage application in Texas, your loan officer or mortgage broker is required to disclose information about your relationship with him or her. This section is required by Texas law, so make sure you read it over and understand everything. It gives you information on fees you have paid or still need to pay and how to file a complaint with the Texas Savings and Loan Department.