When I take your wi-mortgage.com application, I will complete a Fannie Mae form 1003. It is commonly called a uniform residential loan application or URLA. This is the first step in the mortgage approval process. The 1003 must be filled out honestly and completely.
Section 1 of the 1003 asks for the type of mortgage and terms of loan:
VA - Veteran's Administration Loan
FHA - Federal Housing Administration Loan
CONVENTIONAL - Fannie Mae loan
USDA - United States Department of Agriculture Rural Development Loan
NUMBER OF MONTHS - Length of Loan
AMORITIZATION TYPE - Fixed Rate, Gradual Payment, Adjustable Rate
Section 2 of the 1003 asks for property information and purpose of the loan:
SUBJECT PROPERTY ADDRESS - Property you are purchasing or refinancing
NUMBER OF UNITS - 1,2,3,4
LEGAL DESCRIPTION OF PROPERTY - Need old title to complete or will complete when new title is researched
YEAR BUILT - How old is home.
PURPOSE OF LOAN - Purchase, Refinance, Construction
PROPERTY USE - Primary residence, second home, investment property
YEAR ACQUIRED - How many years in home
ORIGINAL COST - How much was original purchase price
EXISTING LIENS - How much you currently owe on mortgage(s)
PURPOSE OF REFINANCE - Rate and term or refinance
IMPROVEMENTS MADE - Have there been improvements completed on home and cost of those improvements
Section 3 of the 1003 asks for borrower(s) information:
BORROWER'S NAME - don't forget to include JR, or SR
SOCIAL SECURITY NUMBER -
HOME PHONE NUMBER -
DATE OF BIRTH -
YRS IN SCHOOL -
MARITAL STATUS - Married, Unmarried, Separated
DEPENDENTS - make sure matched tax returns
PRESENT ADDRESS - Must have two year history
PREVIOUS ADDRESS - If residing at current residence for less than two years
Section 4 of the 1003 asks for employment information:
NAME ADDRESS OF EMPLOYER - Must match pay stubs - if not need LOX
YEARS ON THE JOB - Must have two years work history
YEARS IN PROFESSION - Looking for stability in client
POSITION - Name of position - if self-employed need type of business
BUSINESS PHONE NUMBER -
PREVIOUS EMPLOYER INFO - If employed at current employer for less than two years
Section 5 of the 1003 asks about monthly income and housing expense:
BASE INCOME: Your hourly salary or base salary
OVERTIME: Important if you have not earned overtime in last two years we can not use it
BONUSES: Important if you have not earned bonuses in last two years we can not use it
COMMISSIONS: Important if you have not earned commissions in last two years we can't use it
DIVIDENDS/INTEREST: For example fixed annuities
RENTAL INCOME: Net rental income not gross
OTHER SOURCES OF INCOME: Such as SSI, Alimony, Child Support, and Pension
COMBINED MONTHLY HOUSING EXPENSES: Principal, Interest, Homeowners Insurance, Real Estate Taxes, Mortgage Insurance, and Homeowners Association Dues
Section 6 of the 1003 asks about assets and liabilities:
ASSETS - Assets are very important because they often build your case to purchase or refinance your home. You can not have enough assets! Assets can be checking and savings accounts with two months reserves (PITI), Stocks and Bonds, and Vested interest in retirement fund.
LIABITITIES - Liabilities are outstanding debts like car payments and credit card payments. It does also include child support and alimony. If you make these types of payments, have court documents ready at the application.
Section 7 of the 1003 detail the transaction in a numerical format:
REFINANCE AMOUNT - The combination of amount owed to current mortgage lender and other debts paid.
PREPAID ITEMS - Estimated Taxes and Insurance Escrows
CLOSING COSTS - Estimated Closing Costs
PMI FEE - All FHA Loans have a PMI cost associated with loan.
LOAN AMOUNT - What is loan amount without PMI
PMI FINANCED - What PMI amount included in loan amount
TOTAL LOAN AMOUNT - Loan amount and PMI combined
CASH FROM OR TO BORROWER - Amount borrower receives or must bring to closing.
Section 8 of the 1003 asks the borrower(s) to answer or declare various questions. All questions are vital but important ones are: Do you have any outstanding judgments against you? Have you been declared bankrupt in last 7 years? Are you a U.S. Citizen? How is property titled? The answers may not allow you to acquire certain mortgage loans
Section 9 of the 1003 asks the borrower(s) to acknowledge and agree to current and future verification of information given to loan officer at application.
Section 10 of the 1003 asks the borrower(s) to give personal information so the federal government can monitor lenders equal credit opportunity: such as Ethnicity, Race, and Sex.
For additional information about WI-Mortgage.com, contact Frank Pabon at 920-623-9245 or visit the website at http://www.wi-mortgage.com.