January 15th, 2018 6:57 AM by Jackie A. Graves
get a loan to buy a home, you’ll need to fill out a mortgage application. This
application — typically called the Uniform Residential Loan Application, or
Fannie Mae Form No. 1003 — will help the lender determine whether you’re a good
candidate for a loan and how much they’ll let you borrow. You can fill this
form out to get pre-approved for a loan even before you find the property you
want, and/or you can use it once you find the property you want and are
applying to get a loan.
you’ve never filled out a form like this before, you might feel a little
intimidated. But don’t worry: You will work with your lender to
complete the form. And this simple guide will walk you through all the types of
information that you or your lender will need to provide for a mortgage
application, so you know what to expect going in.
with the help of the lender, must list which type of loan you want — FHA, VA, conventional
or USDA/Rural Housing Service — the amount and length of the loan, the interest
rate and some other details about the type of mortgage and its terms.
will need to write in the details of the property you want to buy — its
address, the year built, the legal description of the property and the number
of units in the building. Then you will need to write in why you want the loan:
Is it to purchase the property, a refinance, a construction loan or some other
reason? (If the property is a refinance or construction
loan, you will need to provide additional details on the
improvements you plan to make, existing liens and a few other details.) You
will also need to list whose names the title will be in and the source of the
and your co-borrower (if applicable) must fill in your personal information,
including your name, current address (and whether you rent or own), previous
address – if less than two years — (and whether you rented or owned), Social
Security number, phone number, marital status, date of birth, number of years
of school and number of dependents. The lender will use this information to run
your credit report.
and your co-borrower (if applicable) will need to list out details of your
employment. This includes the name, address and phone number of your employer;
your position and job title; the type of business; the number of years you’ve
held that position; and how long you’ve been in that field. If you’ve been in
that position for less than two years, you’ll need to fill out previous employment
details as well. Your lender will call your employer to verify employment. If
you are self-employed, you will likely need to provide a minimum of two years’
personal and business tax returns and current financial statements.
and your co-borrower (if applicable) will need to include details about your
gross income — this includes your base employment income, overtime, bonuses,
commissions, income from dividends, interest, rental income — and combined
monthly housing expenses. These expenses include current rent or mortgage
insurance, taxes and homeowners association fees — basically any
expense related to housing.
and your co-borrower (if applicable) will need to list out what you own (your
assets) and what you owe (your liabilities). Assets include bank accounts,
investments, real estate, cars and businesses owned; you will need to list out
the details (name of bank, account number) and market value for each of these.
Liabilities include credit card balances, installment loans (i.e., car loans,
student loans, boat loans), alimony and child support; for each, you will need to
include account number, monthly payment amount, months left to pay and total
unpaid balance. This allows the lender to analyze your current debt structure
so that they can determine the amount of mortgage
loan that you qualify for. The lender will also analyze your
cash accounts to determine whether you have the necessary down payment amount
and cash reserves required for the loan transaction.
lender will write out the details of the loan — the purchase price, estimated
closing costs, estimated prepaid items, loan amount and other details about the
loan — on this application.
will need to answer yes or no to questions about whether you have declared
bankruptcy within the past seven years, whether there are any outstanding
judgments against you and whether you have had a property or loan foreclosed
upon or have been a party to a lawsuit. If you answer yes to any of these
questions, you will need to provide further explanation.
Signatures and Final Information
will need to sign this application in two places. At the top of the
application, you and the co-borrower (if applicable) need to sign the form to
acknowledge that you understand the terms listed at the top of this
application. You also need to check a box to show whether or not the income or
assets of the co-borrower (if applicable) should be used by the lender when
determining the loan details. At the bottom of the loan application, you and
your co-borrower will need to sign once again, acknowledging that all of the
information provided on the loan application is true.
last section of the mortgage application, you will be asked about your race,
ethnicity and gender but are not required to provide such information. The
government uses this for its own internal monitoring process.
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