The 1003 Mortgage Application Form Explained
If you’re buying a home, you’ll probably fill out a Form 1003.
If you’re planning on using a mortgage loan to purchase a home, then the 1003 Mortgage Application is in your future. Also called the Uniform Residential Loan Application, Form 1003 is the standard application form used by most mortgage lenders in the U.S. Here’s what to expect.
What Is the 1003 Mortgage Application Form?
The 1003 Mortgage Application Form was developed by Fannie Mae and published in August 2016. Its Freddie Mac equivalent is Form 65. Both forms are based on the Uniform Loan Application Dataset and require the same information from consumers upon applying for a residential mortgage loan.
Both Form 1003 and Form 65 were recently redesigned, though these updated forms have yet to go into use just yet. They were expected to begin their “Optional Use Period” on July 1, but the FHFA has delayed implementation for unexplained reasons.
Who Must Use Form 1003?
The majority of U.S. mortgage lenders use either Form 1003 or Form 65 for evaluating potential applicants. This includes those applying for purchase loans, refinances and construction-to-permanent loans, as well as FHA, conventional, USDA, and VA loans.
The reason behind this is that Fannie Mae and Freddie Mac purchase mortgage loans in bulk, either to hold as their own or re-sell as part of mortgage-backed securities to investors. Either way, the loans they purchase must be compliant with all internal guidelines. By using Form 1003 or Form 65, lenders can ensure their loans align with Fannie and Freddie’s rules and are thus eligible for resale by these government-sponsored entities.
Parts of the Application
The 1003 Mortgage Application and its Form 65 equivalent are multi-page documents that require a significant amount of information. Before filling one out, you’ll need to have certain documentation on hand regarding your income, debts, assets, and the home you’re considering buying.
Information you’ll need for the Form 1003 Mortgage Application includes:
- Property information: Address, year built, intended property use
- Loan information: Type and purpose of loan, amount, length of the loan
- Borrower and co-borrower information: Name, Social Security Number, marital status, address, phone number, date of birth
- Employment data: Employer name and address, years on the job, years in the industry, position title, phone number
- Income data: Monthly income, bonuses/overtime/commissions, rental income, dividends
- Housing expenses: Monthly rent, other mortgages, hazard insurance, real estate taxes, etc. on current property
- Assets and debts: Banking and savings account balances, IRAs, 401(k)s and retirement accounts, stocks, bonds, life insurance values, other real estate owned, credit card balances, car loan balances, other monthly payments
- Transaction details: Purchase price, estimated closing costs, discount points, mortgage insurance
- Demographic data: Citizenship, resident status, ethnicity, gender, race
- Signatures: Signatures of both you and your co-borrower acknowledging the accuracy of your form
On some of the data points, you may need your lender or loan officer’s assistance. Before signing the application, make sure you’ve filled in everything accurately and to the best of your ability. If you spot any issues, errors, or omissions on the part your lender, ask them to remedy the problem before you sign on the dotted line.
Beyond Form 1003
The Form 1003 Mortgage Application is only one step in the larger mortgage loan process. You may need to fill it out twice: once at the beginning of your application and then again before closing to verify all information is still accurate and to confirm the loan’s terms and rate.
Beyond Forms 1003 and 65, you’ll also need to provide your lender with numerous types of documentation and paperwork to support your application. This documentation typically includes pay stubs, bank statements, W-2s, tax returns, and more. Your lender may also send your workplace an employment verification form to verify your employment data.
To make filling out your 1003 Loan Application easier, make sure you have the following documents. You may also need to transfer some of this documentation to your lender once your loan is in underwriting:
- Two recent pay stubs
- The purchase offer or sales contract on the home
- Your Social Security card and state ID
- A copy of your last mortgage bill
- Your most recent checking and savings account statements
- Statements for any IRAs, 401(k)s or retirement accounts
- Recent credit card and auto loan statements
- Policy documents for any life insurance you may have
- Income, tax, and other data on any real estate you currently hold
- Your last two years of tax returns and W-2s
Consider scanning or photographing all these documents and storing them digitally. When your lender asks for them, you will be able to transfer them easily.