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Created on Thursday, 02 February 2012 05:49

Oh! I Misspelled My Name On My Loan Application Form

Many borrowers fill out mortgage application documents only to have to wait a longer than usual time to hear from the mortgage provider who is unwilling to grant the home loan.

As a borrower, it is necessary to find out from the mortgage company the reasons why your mortgage application has been denied. This will help prevent such an occurrence when the person decides to initiate a new mortgage loan process.

Usually, the common reasons behind the refusal of a mortgage company to grant a borrower’s request has to do with the financial conditions and the credit score of the borrower. These factors are not easily corrected.

Unless the borrower is able to secure a well paying job that will help improve the borrower’s finances, monetary reasons will still remain a good reason for the lender to reject the loan request. While financial conditions can improve overnight due to the tendency of the borrower to get a job or achieve a great deal of fortune, credit scores take time to build up once they have been destroyed.

Other less serious factors that can still cause the mortgage lender to refuse the loan request has to do with incorrectly filled loan forms.

Borrowers who are looking for home loans for the first time can seek assistance from someone who has gone through the process before; they may even depend on customer service clients of the mortgage company or on housing counselors to help them fill out the loan documents without errors.

The mortgage company cannot process and grant the loan if the loan forms are full of errors. Most times, borrowers whose documents have been incorrectly filled do not receive prompt response from the mortgage company.

The borrower needs to maintain a close relationship with the lender all through the mortgage application process to ensure that any mistake or point that needs to be corrected are duly communicated to him or her and the right thing is done.

Errors on the loan form should not be taken for granted no matter how small they may seem to be. Some mortgage lenders would take quite smaller errors like misspelled names or a wrong date of birth or even wrong address for granted but others would not.

Those who would make a big deal out of these errors may look at it in terms of attempt to present fraudulent information to them.

The situation is even worst when the errors cover areas such as wrong social security number and wrong estimate of income. These will result in outright rejection of the mortgage request by the mortgage lender.

Since borrowers cannot determine how a lender would react to an error on the loan form, it is essential that care and patience is taken when one is filling out the mortgage application form of his or her potential mortgage company.

However, should the borrower notice any oversight he or she might have made in filling the form, the person should duly contact the mortgage lender so that the mistake would be rectified.

If the loan has not been approved, the borrower can have the forms returned to him or her for corrections. But when the lender has gone ahead to process the loan, then the issue becomes more complicated. In this instance, expert advice should be sought on how to handle the problem.