Name, contact information, residency/citizenship information required by the program, marital/dependent information as applicable and co-borrower details.
How to Take a Complete Application
Purchase/refinance, address or target area, price/value, occupancy, property type, down payment and requested loan amount.
Two-year employment history when applicable, employer, position, start date, salary/hourly pay, overtime, bonus, commission, self-employment, retirement, Social Security or other eligible income.
Checking, savings, retirement, investments, gift funds and other eligible assets. Identify earnest money, down payment, closing costs and reserves.
Mortgages, installment loans, revolving accounts, student loans, support obligations and other debts required by the program.
Real estate owned, housing expenses, rental income and all required application declarations. Never skip uncomfortable questions.
Practice File: Taylor Morgan
This fictional example shows how a new LO should organize the information before deciding what still needs to be verified.
TransactionPurchase · Primary Residence
Purchase Price$300,000
Down Payment5% / $15,000
Base Loan$285,000
Credit Score720 example score
EmploymentSalaried · 4 years
Annual Salary$84,000
Gross Monthly Income$7,000
Other Monthly Debts$850
Estimated Housing$2,300 PITIA/MI example
Verified Assets$35,000 example
OccupancyOwner-occupied
Monthly income
$84,000 annual salary ÷ 12 = $7,000/month.
LTV
$285,000 loan ÷ $300,000 price = 95% LTV.
Total obligations
$2,300 housing + $850 debts = $3,150/month.
Total DTI
$3,150 ÷ $7,000 = 45% DTI.
PRELIMINARY READPotentially workable — verify before promising.
The numbers may fit several program possibilities, but the LO still needs actual credit liabilities, AUS findings, income documentation, asset sourcing, property details, taxes/insurance/HOA, mortgage insurance, current rates and lender/program requirements.
How to Analyze Income, Assets & Credit
Income
Determine whether income is stable, documented and likely to continue under the program. Salary can be straightforward; overtime, bonus, commission, self-employment and rental income often require averaging or additional analysis.
Assets
Confirm the borrower has enough eligible funds for down payment, closing costs and required reserves. Identify ownership, large deposits, gifts and any funds that require sourcing.
Credit
Review more than the score. Look at payment history, mortgage/rent history where applicable, revolving utilization, installment debt, collections, judgments, bankruptcies/foreclosures and recent inquiries as required.
Liabilities
Use the payment required by the applicable guideline. Student loans, support obligations, co-signed debt and debts paid by others can have special rules.
Pre-Qualification vs. Pre-Approval vs. Final Approval
An initial assessment based on information supplied and whatever documentation/credit review has been completed. Clearly communicate assumptions.
A stronger preliminary credit assessment when the file has been reviewed under the company’s process and applicable conditions are identified. It remains conditional.
Issued through the applicable underwriting process after required conditions, documentation, property review and lender/investor requirements are satisfied.
New LO rule:
Never tell a borrower “you are approved” when what you mean is “the preliminary numbers appear to qualify.” Explain what has been reviewed and what remains subject to verification.