Real Estate Term of the Day: Loan Application
LOAN APPLICATION – document required by a lender prior to issuing a loan commitment. This application usually includes: 1. name of borrower, 2. amount and terms of loan. 3. description of the subject property to mortgaged and 4. borrower’s financial and employment data (Barron’s Dictionary of Real Estate Terms)
According to Mortgages Analyzed, the Fannie Mae Form 1003 is a loan application form designed by Fannie Mae and Freddie Mac that is used by lenders to obtain financial and personal information from borrowers who apply for a mortgage loan secured by a one to four unit residential real estate. Form 1003 is also known as the Uniform Residential Loan Application (URLA). Form 1003 is widely adopted by mortgage lenders as a standard loan application form. It is generally referred to as Form 1003, or just 1003 and pronounced as “ten-o-three”. Freddie Mac also uses the same application form and is known as the Freddie Mac Form 65.
Here is an example of the Universal Loan Application.
It is broken down into 10 sections:
I. Type of Mortgage and Terms of Loan
II. Property Information and Purpose of Loan
III. Borrower Information
IV. Employment Information
V. Monthly Income and Combined Housing Expense Information
VI. Assets and Liabilities
VII. Details of Transaction
IX. Acknowledgement and Agreement
X. Information For Government Monitoring Purposes