The Uniform Residential Loan Application (also known as the 1003 Application) is the primary tool used in the mortgage process. It is the application form required for all mortgage purchases. You can obtain Fannie Mae Form 1003 to submit your application. The form was developed to help lenders assess your worthiness as a borrower. You must submit the 1003 each time you get a new mortgage, refinance an old one, or secure a home construction loan. Nickel City Funding wants to support Orchard Park, NY homebuyers with the process. Below are details and tips on how to complete the various sections of the documentation required.
Sections of the 1003 Mortgage Application Form
Here is Nickel City Funding Inc.’s step-by-step guide to the 1003 Application Form sections:
- Type of Mortgage and Term of Loan—your lender fills this section in with the loan type, amount, rate, term, and schedule.
- Property Information and Purpose of Loan—this details the location and description of the property to be financed. If you have not yet located the home, then you may be able to list “to be determined”.
- Borrower Information—this details your information and that of any co-owners or dependents. Consider who you claim on your taxes or use your tax filings to recall information on social security numbers, etc.
- Employer Information—certain mortgages permit buyers to establish their loan using bank statement information. However, it is required to list at least two years of employment history on the form. Note you can mark “self-employed” as needed.
- Monthly Income and Expenses—you need to list your current home expenses, as well as projected expenses if you purchase a home. In order to verify your taxable income, the lender also needs you to send IRS form 4506-T. This helps the lender determine debt-to-income ratios.
- Assets and Liabilities—you need to take time to gather all of this information, you must include large assets such as cars and any value of owned insurance. Certain retirement accounts may even be considered as an asset. This section of the form may take the longest to complete.
- Details of transaction—you can ask your lender for assistance with this part, as well. This determines the true cost and total of the loan.
- Declarations—list honest answers to the questions listed here. The lender is using this to see if other people can put a lien on your loan if approved.
- Acknowledgement—this is where you should read carefully, it falls on you to certify that all the information on the form is accurate.
- Government monitoring—this section is voluntary; however, the information may help the government ensure that there is not discrimination in lending.
If you were not able to fit all information, there is a continuation sheet for added details. Nickel City Funding is committed to helping buyers understand the 1003 Loan Application process; contact our Orchard Park, NY offices if you need further assistance!