Applying for a mortgage loan? The first step is to fill out a loan application. Lenders use the information you provide on the loan application to determine whether or not they can give you a loan, and if so, the amount of money they can lend you. This form is also known as the Uniform Residential Loan Application-1003. This form is usually about five pages long and it provides the basic information needed to approve or deny you for a mortgage loan. You can fill out a loan application by calling the lender you have decided to apply with and a loan officer or representative can assist you on filling out the application online or over the phone.

Step one:

If you have agreed to all the terms sign the top of the application. If there is a co-borrower such as spouse, be sure to check the appropriate boxes.

Step Two:

Select the type of mortgage you are applying for and loan amount for your mortgage request in Section I. If you are not sure about your loan amount, interest rate, or term of the loan you may leave them blank. Your lender will help you determine them at a later time. The lender will fill out the remaining boxes in section I.

Step three:

Fill in the subject property address in Section II. Be sure to select the purpose of the loan and what type of property it will cover, such as primary, secondary, etc. You will be asked to list the year you acquired the home, the original cost, and current lien amount. This section will also ask you the purpose of the refinance, or if it is a purchase, what title is currently vested in, and where the funds for closing will be coming from.

Step four:

Enter your full legal name, date of birth, social security number, and 2 years’ worth of residence history and select the appropriate box if you are married or unmarried etc. in section III for all borrowers. Please be complete and accurate as possible and fill out all the boxes in this section if possible.

Step five:

You will need to list 2 years’ worth of employment history in section IV. Be sure to list the address and phone numbers as well as the business name. This will be used by the lender to verify your employment, so if you are unsure of the dates, the Lender will be able to update them.

Step six:

List all of your income; remember to include bonuses, commission, overtime, and rental income from all borrowers if applicable in section V. This section will also include the current monthly housing expenses for both the current amounts and the proposed amounts. The proposed amount will fluctuate until a final loan amount and interest rate are determined.

Step seven:

List your asset information such as checking and savings account balances in section VI. You will also need to list your liability information. List any monthly debt payments you make for credit cards bills, student loans, child support and alimony. Don’t forget to list any current real estate owned in this section as well.

Step eight:

Section VII is called the details of transaction, and it does just that. It will list the debts being paid off, the closing costs, prepaid costs, loan amount, and amount of cash you will bring to closing. These figures will be estimated and shouldn’t be considered final.

Step nine:

This section-VIII is the Declarations; this section must be accurately filled out, failure to do so could cause red flags as your file is processed. In addition to possible denial depending on what was improperly filled out.

Step ten:

Section IX-Sign the application, by signing this section you are acknowledging and agreeing that you have filled out the application accurately to the best of your knowledge.

Step eleven:

Section X-this section is not required to be filled out, but it is preferred, if willing for government monitoring purposes.

Be sure to fill in all the sections, and answer all the questions as completely and honestly as possible to make it as smoothly as possible for your loan process. This will give your lender a great starting point for a preapproval, and also to determine what documentation will be needed.

By: Melody Williams
Loan processor at Box Home Loans