A mortgage application is also called more commonly a 1003 and sometimes a URLA (Uniform Residential Loan Application). The mortgage loan application must be completed in order to apply for a home loan. It must be completed accurately and completely. Completing an application is the first step to reaching your dream of homeownership.The Uniform Residential Loan Application, or 1003, has to be used for all conforming loans delivered to Fannie Mae and Freddie Mac. This form is so widely accepted in the mortgage industry that even non-conforming lender banks use it. Some commercial property lenders also use this application form.
A mortgage application provides the lender with the borrowers personal information, income information, employment history, asset and liability information. The application also provide details of the proposed loan transaction.
Once filled out, the mortgage application is then given to an underwriter along with other documents verifying the accuracy of the completed application. The mortgage application also determines what is known as your debt ratio and will help determine how much of a house you can afford.
The U/W will use this application in determining if you will qualify for a loan. In terms of how important this application is, you would consider this your loan resume.
Make sure all information that you give is accurate. Any inconsistencies or inaccuracies may result in a denial or a higher rate product because you do not qualify for the initial product.
Recently the 1003 mortgage application was revised. This revision happened at the beginning of 2006.
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