Home Mortgage Application Errors that Must be Corrected

Not all errors on a home mortgage application must be corrected before processing. Some errors will not affect the loan process, and these can be corrected at any time. Ask yourself this question to know whether you have a serious error: will this affect the actual loan amount I receive? If so, you need to correct the error immediately. The following is a list of critically important information that should be corrected.

Social Security or Tax I.D. Information

Your social security number and taxpayer identification are the primary means the lender will use to review your financial history. If you have a tax lien, a previous bankruptcy or other issues, these will be revealed by checking on this information. Using the wrong social security number or I.D. number means you are actually providing the information of another person instead of your own. This can be interpreted as fraud or intentional dishonesty if not corrected.

Credit Information

The lender will use your social security number to run your credit check in most cases. However, you may also be asked to disclose information that may be on your credit score prior to submitting a loan application. If you do not include information on a relevant issue, like a prior foreclosure on a different mortgage, then you may be automatically disqualified from receiving a mortgage.

Income & Employment Information

Your lender will verify the income you state on your mortgage application. This number will be the basis for setting the limits on your loan. If you provide incorrect income, then the lender will likely find out. This is because they contact your employer, so your employment information must also be correct. It is not enough to simply tell a lender how much you make or what you do. Today, lenders will verify this information. Making an error here could again be interpreted as intentionally misleading the lender.

Reference Information

References may be required on your mortgage application. Personal references do not have as great an impact on the loan process as financial references. For example, if you are asked to provide your bank account information so the lender can verify your average balances, you cannot make an error in reporting this. If you do, the error must be corrected prior to the loan moving through processing. The lender will likely catch this error in the processing steps, and the lender may disqualify you for providing incorrect information on the application.

Adding a Borrower

If you intend to have more than one borrower on the mortgage, called a joint mortgage, you need to have complete and accurate information on this borrower prior to applying. While you can add a borrower later, you will have to refinance the loan in order to do so. As such, married couples need to ensure they both provide the most accurate information possible for a mortgage loan to be processed. Having incomplete information on one of the two borrowers is not acceptable. A joint mortgage is distributed by taking into account the joint earning power of more than one person. It is essential for a lender to have all of this information prior to processing.