Mortgage Loan Application (1003 Form) Flashcards
get well acquainted with is the 1003 Form which applicants must fill in. This section acts in a similar way to the previous ones in this chapter, testing your knowledge on the contents of the form, why it’s an integral part of the lending process, why some states may have different forms, and the overall purpose of the form in general.
There are the pre-written documents that lenders give their clients and then there are the blank ones that applicants must fill in
themselves. From these forms, what is the 1003 Form?
A. An application for a mortgage quote.
B. An application for a mortgage.
C. A form asking for an applicant’s name, employment, income, assets, and debts.
D. An application form for a reversed mortgage.
Correct answer: C
C is correct because the 1003 form (also known as a Uniform Residential Loan Application) is given by a lender to an applicant to get their name, employment history, income, assets, and debt in the initial applicant stage of the mortgage lending process. This form is essential for the underwriting process to take place and backed up by supporting documents.
What is section four of the 1003 form?
A. Personal details.
B. Property details.
C. Military service details.
D. Demographic information.
Correct answer: B
B is correct, as section four of the 1003 form describes the property that the applicant wishes to buy. This of course includes details of the property’s price, its location, the type of house, potential rent (if the applicant wishes to rent), and other details.
How many sections are in the 1003 Form?
A. Five.
B. Three.
C. Nine.
D. Ten
Correct answer: C
C is correct, as the 1003 Form has nine sections in total. These include general borrower information, assets and liabilities, real estate, loan and property information, declarations, acknowledgments and agreements, military service, demographic information, and loan originator information.
Understanding the purpose of the 1003 Form, what isn’t part of this blank document?
A. A request for a mortgage type and the amount they want to pay.
B. Income details.
C. Property details.
D. Debt and assets of the applicant.
E. Employment details.
Correct answer: A is correct, as a 1003 form is a summary of the client and their financial situation, which is an integral part of the lending application process. It doesn’t have a section on what the client would like
to pay or the type of mortgage they want.
Correct answer: B
B is correct, as official mortgage loan applications follow standards set by the Federal National Mortgage Association using either the 1003 Form (Fannie Mae) or the slightly less used Form 65 (Freddie Mac).
