How to Correct Errors on Your Home Equity Loan Application
It is important to carefully fill out your home equity loan application to avoid any potential problems in the future. The information you provide will be the basis for the loan you receive. Errors can change the loan terms or amount. Depending on your error and when it was made, you will have several options to correct the problem.
Correcting Errors before Submission
Before you submit your application, review the document for any potential errors. If you are unsure about dates or contact information listed, you should be certain to double check. The quality of your application can affect your terms. Catching mistakes at this point helps avoid problems and delays in the future. If you are applying online, you will have no problem making a change. If you have a paper application, it is better to attach an amendment or cross-out an error and initial any changes.
Correcting Errors before Processing
Once you submit your application, you may discover an error. At this point, you have two options: one, you can contact the lender to file an amendment; two, you can withdraw the application and resubmit it.
Small errors are typically best handled with an amendment. Larger errors, such as items that may affect your actual loan or loan terms, should be handled by withdrawing and resubmitting the document. Once you withdraw your application, you need to be very careful to make all the necessary changes. Withdrawing an application a second time, will give the lender a poor idea about you and they will begin to think you are filing fraudulent applications. Once changes have been made, resubmit the application and expect some delays in the process.
Correcting Errors before Funding
If your loan has been processed and approved, things get a little trickier to fix. It is best to handle them before you deposit money. For this reason, you should review your entire loan contract at the time it is approved to check one more time for any problems. Most errors will be caught by the lender during the processing phase, especially large errors, but some will not be. It is your job to point these out before spending a single penny. Errors can invalidate your application and you will have lost any money you invested. So, check for errors before you lose your money.
Correcting Errors after Funding
Once you have closed and spent the money to buy your home, it is very challenging to correct any major error. Minor errors that would be subject to change regardless can be corrected with an amendment. For example, changing your phone number or employer's address is relatively simple. Contact your lender and tell them you need to amend your contract, and then follow instructions to provide a written request.
However, if the incorrect information was significant, you may want to speak with an attorney. A loan funded using the wrong social security number, for example, could be considered a fraudulent loan. In this case, your loan will become “due and payable.” When a loan is due and payable, a lender is request to be paid off completely before they foreclose.