What is a 1003 form in real estate?
What is a 1003 form in real estate?
The application asks questions about the borrower’s employment, income, assets, and debts, as well as requiring information about the property. Form 1003 is typically completed twice in the mortgage process: once during the initial application, and again at closing.
Does the final 1003 need to be signed by the loan officer?
Documenting the Loan Application A complete, signed, and dated version of the final Form 1003 must always be included in the loan file. The final Form 1003 must reflect the income, assets, debts, and final loan terms used in the underwriting process.
What is the new 1003?
Fannie Mae and Freddie Mac (the GSEs) redesigned the Uniform Residential Loan Application (URLA) (Fannie Mae Form 1003) and created new automated underwriting system (AUS) specifications (Fannie Mae Desktop Underwriter® [DU®] Spec) to help lenders better capture relevant loan application information and support the …
How many sections do we have in 1003?
10 Sections of URLA (1003)
How many sections are in the 1003?
The nine sections of the new 1003 application form. The new 1003 form was created to make it easier for borrowers to apply for a home loan. It also gives lenders more information to help them make a more accurate approval decision.
Can you still use the old 1003?
Loans started in legacy formats prior to March 1, but not submitted by that date, may be submitted to DU in the legacy format (and use the legacy Form 1003) through April 30, 2021.
Can unmarried borrowers be on the same 1003?
To be clear – if you require unmarried joint applicants to complete separate 1003 applications, but don’t require married joint applicants to complete separate 1003 applications, that is discrimination based on marital status, which violates both ECOA/Regulation B.
What is the difference between initial 1003 and final 1003?
Initial 1003 and Final 1003 Form 1003 is filled at two times during the loan process. Form 1003 is first completed at the time of making a loan application and this form is generally referred to as “Initial 1003”.
Why would a lender require a borrower to complete form 1003 in order to obtain a mortgage?
Lenders need to use the 1003 Form to ensure their mortgage loans align with Fannie Mae and Freddie Mac’s rules and guidelines. Fannie Mae and Freddie Mac buy mortgage loans in bulk from lenders, and using this form helps confirm that the loans qualify for resale…
What are the 10 sections of 1003?
Explaining the Home Loan Process Part 2: The Application
- Section I: Type of Mortgage and Terms of Loan.
- Section II: Property Information and Purpose of Loan.
- Section III: Borrower Information.
- Section IV: Employment Information.
- Section V: Monthly Income and Combined Housing Expense.
- Section VI: Assets and Liabilities.