What Are the 6 Pieces of Information for a Mortgage Application?

The mortgage application process is the first step toward homeownership. Understanding the information lenders require can simplify this journey, ensuring a smoother and more efficient experience for prospective homebuyers.

The Six Core Information Requirements

When applying for a mortgage, specific data points are collected to initiate the process and trigger consumer protections. Under the TILA-RESPA Integrated Disclosure (TRID) Rule, providing six particular pieces of information constitutes a “mortgage loan application.” This obligates the lender to issue a Loan Estimate within three business days, allowing them to assess eligibility and potential loan terms.

The first piece of information required is the applicant’s full legal name, including all borrowers. This is necessary for accurate identification, enabling lenders to perform identity verification and credit checks. Providing correct names helps prevent delays.

Applicant(s)’ income details are another fundamental requirement. Lenders evaluate income to determine a borrower’s capacity to repay the loan and assess the debt-to-income (DTI) ratio. Various income sources are considered, including salaries, wages, bonuses, commissions, and self-employment earnings. Other reliable and regular income, such as Social Security benefits, alimony, child support, or investment income, can also be factored in, provided it is consistent and verifiable.

The Social Security Number (SSN) of each applicant is also required. This number is used for identity verification and to obtain comprehensive credit reports from major credit bureaus. Accessing credit reports allows lenders to evaluate creditworthiness, payment history, and overall financial habits, which influence loan approval and interest rates.

The specific property address for which the loan is sought is another key component. The address helps the lender evaluate the property’s location, characteristics, and eligibility for financing. This information is essential for initiating property-specific assessments, such as ordering an appraisal.

An estimated property value is also necessary for the initial application. This estimate helps lenders calculate the loan-to-value (LTV) ratio, which is a significant factor in determining the risk associated with the loan. Applicants might base this estimate on the listing price or recent sales of comparable properties.

Finally, the loan amount sought by the applicant completes the six required pieces of information. This figure indicates the borrower’s financing needs and helps the lender structure potential loan options and terms. Once these six pieces are provided, the lender must furnish a Loan Estimate within three business days.

Preparing Supporting Documentation

Beyond the initial six pieces of information, a mortgage application requires detailed supporting documentation to verify the provided data. Gathering these documents in advance can streamline the entire process. Lenders require proof to confirm income, assets, and other financial details.

Proof of income and employment is a significant part of this documentation. Applicants typically need to provide pay stubs from the most recent 30 to 60 days and W-2 forms from the past two years to demonstrate consistent earnings. Self-employed individuals generally submit tax returns, including all schedules, and profit and loss statements covering the last one to two years.

Verification of assets is also required to confirm funds for the down payment, closing costs, and financial reserves. This typically involves submitting bank statements for checking and savings accounts for the past two to three months. Statements for investment accounts, such as brokerage accounts, mutual funds, and retirement accounts like 401(k)s and IRAs, are also commonly requested. Any large, unexplained deposits may require additional documentation.

While applicants do not typically provide their own credit reports, lenders will pull these reports from the three major credit bureaus. This allows lenders to review an applicant’s credit history, including payment patterns, outstanding debts, and credit utilization. The information on these reports is used to generate a credit score, which influences loan approval and the interest rate offered.

Property-related documents are also necessary once a specific home is identified. These may include a signed purchase agreement, which outlines the terms of the sale. Property tax statements or deeds for any other real estate owned by the applicant might also be requested. An appraisal report, typically ordered by the lender, will later confirm the property’s value.

Finally, personal identification is required. This includes government-issued photo identification, such as a driver’s license or passport. A Social Security card or an Individual Taxpayer Identification Number (ITIN) may also be requested to verify identity.

Submitting Your Application

Once all necessary information and supporting documents are prepared, the next step involves formally submitting the mortgage application. The process begins with choosing a mortgage lender that aligns with the applicant’s financial needs and preferences.

After selecting a lender, applicants complete the formal application, which can be done online or through paper forms. This involves accurately transferring the six core pieces of information and other financial details into the lender’s official system.

Supporting documents, such as income statements, asset records, and personal identification, are then submitted to the lender. This submission often occurs through secure online portals, although mailing or in-person delivery options may also be available. Providing complete and accurate documentation at this stage is important for timely processing.

Following submission, the lender reviews the application and verifies all provided information during the underwriting process. This review includes assessing income, assets, debt, and property details. Applicants typically receive a Loan Estimate within three business days of the initial submission of the six core pieces of information, outlining estimated loan terms and costs. The lender may request additional information or clarification as needed, leading to a conditional or final approval for the loan.