The official complete mortgage application is referred to as the uniform residential loan application or 1003 (pronounced, ten-oh-three) after the form number that identifies the application within the mortgage industry. This is a standardized form developed by Fannie Mae and used ubiquitously within the industry. Since all mortgage lenders use the same application all lenders will require the same information to fill out the mortgage loan application and process the home loan request efficiently and effectively.
A potential home loan borrower should know what type of mortgage loan they wish to apply for and have an approximate indication about their qualifications. Using the mortgage calculators will help the borrower understand the terms and conditions of various loan types and this should help determine the type of mortgage that should be obtained. The mortgage qualification calculator, mortgage payment calculator, mortgage term comparison calculator and adjustable rate mortgage calculator may all be helpful in the quest to locate the right home loan.
On the mortgage application, the applicant will be expected to provide the following information:
Your current home address, a phone number and length of time at that address.
Social Security number, age, marital status and number of dependents.
Whether you currently rent, own or live with family.
Employer’s name, address, phone number, occupation and length of time on the job.
Gross monthly income.
A list of assets with the name, account number and present balance. Asset list should include bank accounts, IRA’s, 401K and investment accounts.
A list of liabilities with the name, account number, balance and monthly payment. Liabilities should include existing mortgage loans, auto loans, and credit cards.
Information regarding any existing real estate owned included the address, value and mortgage amount.
The applicant must disclose the value of your personal property, including assets and retirement accounts, furniture, cars, any valuable collections, other valuable property, and life insurance.
Information on whether the applicant has filed bankruptcy, defaulted on government debt or have any lawsuits pending.
When the mortgage application is complete, the prospective borrower will be asked for a considerable amount of information that is used to support the data on the application. In the mortgage industry, the initial application is viewed as the document that states what the customer says is going on and the job of the processor is to verify that information. The prospective home loan borrower should be prepared to provide the mortgage lender the following information:
Two months of bank statements or asset statements.
The last two years W-2s and tax returns.
One month of pay stubs.
Divorce papers, if they apply.
If the loan is for a new home purchase, the applicant will need a signed copy of your ratified sales contract as well as receipts for the earnest money deposit toward the property.
Once the application is completed, the lender will review the application and decide whether to deny or approve it. If approved, the last step in the process is the meeting in which documentation is completed and the deal is closed. If denied, the prospective borrower should talk to the lender in order to devise a plan and find out why the application was denied. By law, the prospective borrower should receive a disclosure statement from the lender in writing that states why the application was turned down.
Mortgage applications require a great deal of information and documentation to be processed. Generally, the more information provided, the faster the process will progress. It is important to be prepared and understand the steps to the mortgage loan approval. Before filling out an application, be sure to review your mortgage loan qualification and monthly payment figures with the appropriate mortgage calculators.
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