What is an application? 

An application is simply how lenders gather your personal information on a form known as the 1003. This includes current and previous addresses, properties owned, employment information and assets that will be used for the transaction along with reserves. Your current credit report will then be merged onto the 1003 to complete your profile. The completed 1003 will then be used as the basis for mortgage programs and pricing that would be applicable to your scenario and that you would qualify for. (This would be a basic pre-approval) NOTE: Some lenders charge for an application as a way to hold you hostage. There should be NO COST to you to receive a pre-approval!! The pre-approval should include a Good Faith Estimate that includes the Rate, Terms and cost applicable to your transaction. NOTE: This is not a commitment. This does not lock your rate. This also does not mean you have chosen your lender. In most cases you will be asked to document most or all of the information on the 1003 with pay stubs, tax returns, bank statements etc…  After an Underwriter reviews all of the information the lender will then issue a commitment/conditional approval. Now it’s real!! The approval is the lender accepting you and with the commitment they are now offering you a specific loan package and terms. You are not obligated to accept their offer… You are free to pursue other lenders if you feel that the offer is not in your best interest… NOTE: You will lose your application fee if you paid one… so be careful.  So in short an application is just presenting yourself to a lender so that they can determine their risk in lending to you… The lender will then make you an offer that you choose to accept or decline.  At Norstar Mortgage we have NO APPLICATION or PRE-APPROVAL FEES EVER… We believe you should be able to look before you leap… And when you do decide to leap you can trust that we will be there for you!! 

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