Uniform Residential Loan Application Tutorial

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Meet Fannie Mae Form 1003, your typical mortgage loan application. You probably won't be filling the whole thing out yourself--today, most lenders take your information verbally and fill out your application for you. And while no one has to be an expert in mortgage lending to get a home loan or sign an application, it is your signature at the bottom of that form and you are responsible for the accuracy of the information on it. In addition, the wrong information could cause your application to be declined when the correct figures would net you an approval.

This tutorial will allow you to check out any section of the application and see what information goes in there, why it's needed, and what documentation you might need. There are also tips for making you look better to an underwriter and avoiding common blunders.

 
Uniform Residential Loan Application
This application is designed to be completed by the applicant(s) with the Lender’s assistance. Applicants should complete this form as “Borrower” or “Co-Borrower,” as applicable. Co-Borrower information must also be provided (and the appropriate box checked) when the income or assets of a person other than the Borrower (including the Borrower’s spouse) will be used as a basis for loan qualification or the income or assets of the Borrower’s spouse or other person who has community property or similar rights pursuant to applicable state law will not be used as a basis for loan qualification, but his or her liabilities must be considered because the spouse or other person who has community property or similar rights and the Borrower resides in a community property state, the security property is located in a community property state, or the Borrower is relying on other property located in a community property state as a basis for repayment of the loan.

If this is an application for joint credit, Borrower and Co-Borrower each agree that we intend to apply for joint credit (sign below):



Borrower   Co-Borrower
Mortgage Applied for: VA
FHA
Conventional
USDA/Rural      Housing Service
Other (explain):
Agency Case Number Lender Case Number
Amount
$
Interest Rate
                            %
No. of Months Amortization Type: Fixed Rate
GPM
Other (explain):
ARM (type):
Subject Property Address (street, city, state & ZIP) No. of Units
Legal Description of Subject Property (attach description if necessary) Year Built
Purpose of Loan Purchase   Construction Other (explain):
Refinance Construction-Permanent
Property will be:
Primary Residence Secondary Residence Investment
Complete this line if construction or construction-permanent loan.
Year Lot Acquired Original Cost

$
Amount Existing Liens

$
(a) Present Value of Lot

$
(b) Cost of Improvements

$
Total (a + b)

$
Complete this line if this is a refinance loan.
Year Acquired Original Cost

$
Amount Existing Liens

$
Purpose of Refinance

$
Describe Improvements   made   to be made

Cost:$
Title will be held in what Name(s) Manner in which Title will be held Source of Down Payment, Settlement Charges, and/or Subordinate Financing (explain)
Estate will be held in:
Fee Simple
Leasehold (show
     expiration date)
Borrower III. BORROWER INFORMATIONCo-Borrower
Borrower’s Name (include Jr. or Sr. if applicable) Co-Borrower’s Name(include Jr. or Sr. if applicable)
Social Security Number Home Phone
(incl. Area code)
DOB(mm/dd/yyyy) Yrs. School Social Security Number Home Phone
(incl. Area code)
DOB(mm/dd/yyyy) Yrs. School
Married  Unmarried (include                     single,divorced,widowed)
Separated
Dependents(not listed by Borrower) no. ages
Married  Unmarried (include                     single,divorced,widowed)
Separated
Dependents(not listed by Borrower) no. ages
Present Address (street, city, state, ZIP)     Own Rent __No. Yrs. Present Address (street, city, state, ZIP)     Own Rent __No. Yrs.
Mailing Address,if different from Present Address Mailing Address, if different from Present Address
If residing at present address for less than two years, complete the following:
Former Address (street, city, state, ZIP)     Own Rent __No. Yrs. Former Address (street, city, state, ZIP)     Own Rent __No. Yrs.
Borrower IV. EMPLOYMENT INFORMATIONCo-Borrower
Name & Address of Employer   Self Employed Yrs.on this job Yrs. employed this,
line of work/profession
Name & Address of Employer   Self Employed Yrs.on this job Yrs. employed this,
line of work/profession
Position/Title/Type of Business Business Phone (incl. area code) Position/Title/Type of Business Business Phone (incl. area code)
If employed in current position for less than two years or if currently employed in more than one position, complete the following:
PAGE 2
Borrower IV. EMPLOYMENT INFORMATION(cont'd)Co-Borrower
Name & Address of Employer   Self Employed Dates(from – to) Monthly Income


$
Name & Address of Employer   Self Employed Dates(from – to) Monthly Income


$
Position/Title/Type of Business Business Phone
(incl. area code)
Position/Title/Type of Business Business Phone
(incl. area code)
Name & Address of Employer   Self Employed Dates(from – to) Monthly Income


$
Name & Address of Employer   Self Employed Dates(from – to) Monthly Income


$
Position/Title/Type of Business Business Phone
(incl. area code)
Position/Title/Type of Business Business Phone
(incl. area code)
V.MONTHLY INCOME AND COMBINED HOUSING EXPENSE INFORMATION
Gross Monthly
Income

Borrower

Co-Borrower

Total
Combined Monthly Housing Expense
Present

Proposed
Base Empl. Income* $ $ $ Rent $
Overtime First Mortgage(P&I) $
Bonuses Other Financing(P&I)
Commissions Hazard Insurance
Dividends/Interest Real Estate Taxes
Net Rental Income Mortgage Insurance
Other (before completing,
see the notice in “describe
other income,” below)
Homeowner Assn.Dues Other:
Total $ $ $ Total $ $


Self Employed Borrower(s) may be required to provide additional documentation such as tax returns and financial statements.


Describe Other Income


Notice:


Alimony,child support, or separate maintenance income need not be revealed
if the Borrower (B) or Co-Borrower (C) does not choose to have it
considered for repaying this loan.
B/C   Monthly Amount
     
     
     
     
This Statement and any applicable supporting schedules may be completed jointly by both married and unmarried Co-Borrowers if their assets and liabilities are sufficiently joined so that the Statement can be meaningfully and fairly presented on a combined basis; otherwise, separate Statements and Schedules are required. If the Co-Borrower section was completed about a non-applicant spouse or other person, this Statement and supporting schedules must be completed about that spouse or other person also.

Completed Jointly Not Jointly

ASSETS

Description

Cash or
Market Value
Cash deposit toward
purchase held by:
$
Liabilities and Pledged Assets. List the creditor’s name, address, and account number for all outstanding debts, including automobile loans, revolving charge accounts, real estate loans, alimony, child support, stock pledges, etc. Use continuation sheet, if necessary. Indicate by (*) those liabilities, which will be satisfied upon sale of real estate owned or upon refinancing of the subject property.
List checking and savings accounts below
LIABILITIES Monthly Payment &
Months Left to Pay
Unpaid Balance
Name and address of Bank, S&L, or Credit Union Acct. no. $
Name and address of Company $ Payment/Months $
Acct. no.
Name and address of Bank, S&L, or Credit Union Acct. no. $
Name and address of Company $ Payment/Months $
Acct. no.
Name and address of Bank, S&L, or Credit Union Acct. no. $
Name and address of Company $ Payment/Months $
Acct. no.
PAGE 3
VI.ASSETS AND LIABILITIES(cont'd)
Name and address of Bank, S&L, or Credit Union Acct. no. $
Name and address of Company $ Payment/Months $
Acct. no.
Stocks & Bonds (Company name/number & description) $
Name and address of Company $ Payment/Months $
Acct. no.
Life insurance net cash value

Face amount: $
$
Subtotal Liquid Assets
$ Real estate owned (enter market value from schedule of real estate owned) $ Vested interest in retirement fund $ Net worth of business(es) owned (attach financial statement) $
Name and address of Company $ Payment/Months $
Acct. no.
Automobiles owned (make and year) $ Other Assets(itemize) $
Alimony/Child Support/Separate
Maintenance Payments Owed to:
$
Job-Related Expense (child care, union dues, etc.) $
Total Monthly Payments $
Total Assets a. $
Net Worth (a minus b) $ Total Liabilities b. $
Schedule of Real Estate Owned (If additional properties are owned, use continuation sheet.)
Property Address (enter S if sold, PS if pending sale or R if rental being held for income)
Type of Property Present Market Value Amount of Mortgages & Liens Gross Rental Income Mortgage Payments Insurance, Maintenance, Taxes & Misc. Net Rental Income


$

$

$

$

$

$
Total
$

$

$

$

$

$
List any additional names under which credit has previously been received and indicate appropriate creditor name(s) and account number(s):
Alternate Creditor Name Account Number

a. Purchase price

$
If you answer “Yes” to any questions a through i, please use continuation sheet for explanation. Borrower Co-Borrower Yes No Yes No
b. Alterations, improvements, repairs
a.  Are there any outstanding judgments against you?
c. Land (if acquired separately)
b.  Have you been declared bankrupt within the past 7 years?
d. Refinance(incl. debts to be paid off)
c.  Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?
e. Estimated prepaid items f.  Estimated closing costs g. PMI, MIP, Funding Fee h. Discount (if Borrower will pay)
i. Total costs (add items a through h)
d.Are you a party to a lawsuit?

e.  Have you directly or indirectly been obligated on any loan of which resulted in foreclosure, transfer of title in lieu of foreclosure, or judgment?

(This would include such loans as home mortgage loans, SBA loans, home improvement loans, educational loans, manufactured (mobile) home loans, any mortgage, financial obligation, bond, or loan guarantee. If “Yes,” provide details, including date, name, and address of Lender, FHA or VA case number, if any, and reasons for the action.)
PAGE 4

j. Subordinate financing
If you answer “Yes” to any questions a through i, please use continuation sheet for explanation. Borrower Co-Borrower Yes No Yes No
k. Borrower’s closing costs paid by      Seller
f.  Are you presently delinquent or in default on any Federal debt or any other loan, mortgage, financial obligation, bond, or loan guarantee?

l. Other Credits (explain)
g.  Are you obligated to pay alimony, child support, or separate maintenance? h.  Is any part of the down payment borrowed?

m. OLoan amount (exclude PMI,         MIP, Funding Fee financed)

i.  Are you a co-maker or endorser on a note?
---------------------------------------------------------




j. Are you a U.S. citizen?

n. PMI, MIP, Funding Fee financed
k. Are you a permanent resident alien?



l. Do you intend to occupy the property as your primary residence?




o. Loan amount (add m & n)
If “Yes,” complete question m below.
m.  Have you had an ownership interest in a property in the last three years?




p. LCash from/to Borrower (subtract       j, k, l & o from i)
  1. What type of property did you own—principal residence (PR), second home (SH), or investment property (IP)?
  2. How did you hold title to the home— by yourself (S), jointly with your spouse or jointly with another person (O)?


  _______


  _______


  _______


  _______
Each of the undersigned specifically represents to Lender and to Lender's actual or potential agents, brokers, processors, attorneys, insurers, servicers, successors and assigns and agrees and acknowledges that: (1) the information provided in this application is true and correct as of the date set forth opposite my signature and that any intentional or negligent misrepresentation of this information contained in this application may result in civil liability, including monetary damages, to any person who may suffer any loss due to reliance upon any misrepresentation that I have made on this application, and/or in criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States Code, Sec. 1001, et seq.; (2) the loan requested pursuant to this application (the "Loan") will be secured by a mortgage or deed of trust on the property described in this application; (3) the property will not be used for any illegal or prohibited purpose or use; (4) all statements made in this application are made for the purpose of obtaining a residential mortgage loan; (5) the property will be occupied as indicated in this application; (6) the Lender, its servicers, successors or assigns may retain the original and/or an electronic record of this application, whether or not the Loan is approved; (7) the Lender and its agents, brokers, insurers, servicers, successors, and assigns may continuously rely on the information contained in the application, and I am obligated to amend and/or supplement the information provided in this application if any of the material facts that I have represented herein should change prior to closing of the Loan; (8) in the event that my payments on the Loan become delinquent, the Lender, its servicers, successors or assigns may, in addition to any other rights and remedies that it may have relating to such delinquency, report my name and account information to one or more consumer reporting agencies; (9) ownership of the Loan and/or administration of the Loan account may be transferred with such notice as may be required by law; (10) neither Lender nor its agents, brokers, insurers, servicers, successors or assigns has made any representation or warranty, express or implied, to me regarding the property or the condition or value of the property; and (11) my transmission of this application as an "electronic record" containing my "electronic signature," as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or my facsimile transmission of this application containing a facsimile of my signature, shall be as effective, enforceable and valid as if a paper version of this application were delivered containing my original written signature.

Acknowledgement. Each of the undersigned hereby acknowledges that any owner of the Loan, its servicers, successors and assigns, may verify or reverify any information contained in this application or obtain any information or data relating to the Loan, for any legitimate business purpose through any source, including a source named in this application or a consumer reporting agency.

Borrower’s Signature
X
Date Co-Borrower’s Signature
X
Date
The following information is requested by the Federal Government for certain types of loans related to a dwelling in order to monitor the lender's compliance with equal credit opportunity, fair housing and home mortgage disclosure laws. You are not required to furnish this information, but are encouraged to do so. The law provides that a lender may not discriminate either on the basis of this information, or on whether you choose to furnish it. If you furnish the information, please provide both ethnicity and race. For race, you may check more than one designation. If you do not furnish ethnicity, race, or sex, under Federal regulations, this lender is required to note the information on the basis of visual observation and surname if you have made this application in person. If you do not wish to furnish the information, please check the box below. (Lender must review the above material to assure that the disclosures satisfy all requirements to which the lender is subject under applicable state law for the particular type of loan applied for.)
BORROWER   I do not wish to furnish this information Ethnicity:    Hispanic or Latino    Not Hispanic or Latino Race: American Indian or        Alaska Native
Native Hawaiian or       Other Pacific Islander
Asian Black or African American
White
Sex:   Female      Male
CO-BORROWER   I do not wish to furnish this information Ethnicity:    Hispanic or Latino    Not Hispanic or Latino Race: American Indian or        Alaska Native
Native Hawaiian or       Other Pacific Islander
Asian Black or African American
White
Sex:   Female      Male
To be Completed by Interviewer
This application was taken by:
Face-to-face interview
Mail
Telephone
Internet
Interviewer’s Name(print or type) Interviewer’s Signature           Date Interviewer’s Phone Number(incl. area code)
 Name and Address of Interviewer’s Employer
PAGE 5
CONTINUATION SHEET/RESIDENTIAL LOAN APPLICATION

Use this continuation sheet if you need more space to complete the Residential Loan Application. Mark B for Borrower or C for Co-Borrower.
Borrower: Agency Case Number: Co-Borrower: Lender Case Number:
 
I/We fully understand that it is a Federal crime punishable by fine or imprisonment, or both, to knowingly make any false statements concerning any of the above facts as applicable under the provisions of Title 18, United States Code, Section 1001, et seq.
Borrower’s Signature
X
Date Co-Borrower’s Signature
X
Date
 
 

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