MORTGAGE APPLICATION Meaning and
Definition
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A mortgage application refers to the formal process of applying for a loan to finance the purchase or refinancing of property, typically a residential one such as a house or apartment. It is a detailed submission made by an individual or a group seeking to obtain a mortgage from a financial institution, such as a bank or a mortgage lender.
The mortgage application is a comprehensive document that requires the applicant to provide personal, financial, and property-related information. This typically includes details about the applicant's identity, employment history, income, assets, existing debts, credit history, as well as information about the property being purchased or refinanced.
Once the mortgage application is completed, it is submitted to the lender for evaluation. The lender then assesses the applicant's creditworthiness and financial stability by reviewing the information provided. This evaluation process may also involve verification of the applicant's documents and obtaining an appraisal of the property.
During the assessment, the lender considers various factors, such as the applicant's income, credit score, debt-to-income ratio, employment stability, and the value of the property being financed. Based on this evaluation, the lender determines the applicant's eligibility for a mortgage, including the loan amount, interest rate, and other terms and conditions.
In summary, a mortgage application is a formal submission of information by an individual or group to a lender, seeking a loan for the purchase or refinancing of real estate. It is an essential step in the mortgage process and helps the lender assess the applicant's eligibility and decide the loan terms.
Common Misspellings for MORTGAGE APPLICATION
- nortgage application
- kortgage application
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- mirtgage application
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Etymology of MORTGAGE APPLICATION
The word "mortgage" can be traced back to the Latin term "mortuus", meaning "dead", and the Old French term "gage", which means "pledge" or "security". The combination of these two terms led to the development of the word "mortgage", which refers to a legal agreement where a borrower pledges property as collateral for a loan.
The word "application" is derived from the Latin term "applicare", meaning "to join" or "to attach". In the context of a "mortgage application", the term refers to the act of formally submitting a request to obtain a mortgage loan, attaching the necessary documents and information required by the lender.
