1. What is a digital 1003?
The Digital 10003 takes an applicant through the loan application process online. The Digital 1003 often takes less time to complete and is extremely more convenient because the applicant doesn’t have to take time out of their busy day to go to the bank and sit down, they can be done from anywhere.
2. What is not found in the 1003?
There are a lot of things included in the 1003 such as the appraised property which is the property that the applicant is attempting to purchase. Another thing that is included is the borrower’s social security number, this number is linked to all of your financial information. It is how the government tracks you to make sure that the totals that you submit tax returns. The subject property address is also included, that is the address of the property that you are purchasing. However, the underwriter's name is not included on the 1003 form, the underwriter's name is the person who gets to decide if your application gets approved or not.
3. How many sections is the 1003?
The 1003 form has a total of 9 sections which include borrower information, financial information such as assets and liabilities, financial information- real estate, loan and property information, declarations, acknowledgments and agreements, military service, demographic information, and last the loan originator information.
The borrower's information includes information about the person applying for the mortgage such as name and social security number, if you're applying for yourself or someone else, if the borrower is married or not, and contact information just to name a few of the things included.
Financial information includes assets and money that is owed, such as saving and checking accounts, mutual funds, different stocks that are owned, 401K and 403Bs, as well as assets that are planned to convert to cash to complete the purchase of your next home.
Other financial information is required is any other real estate that is owned, things that are included in this section is monthly rent that is received from rental properties, monthly payments, how much other properties are worth, and any balances of the current mortgages.
Loan and property information includes how much the borrower wants, what is the purpose of this loan like if it’ll be the main residents or a rental property, the number and the doors ( how many families can live there) if the property will be used for residential or commercial use.
Decelerations include details about the past homes the borrower has owned, if the borrower is related to the seller if the borrower has applied for any other loans, and if the property will have more than one loan, this section also goes through any fast financial troubles like bankruptcy and any civil lawsuits that the borrower is involved in, cosigned loans and any federal debt that has not been paid or late payments on that debt.
Acknowledge and agreements, this section basically states that you have provided accurate information and that the loan will be securitized by the home that is getting financed. It also states that you need to pay the premium on time and that you can contact an approved counseling service if you would like to. They would go over what is causing the trouble making the payments and what can be changed in spending habits to allow the payment to be made in full and on time.
Military service is where you state if you are currently serving or have served as a member of the armed forces. If you are a member of the armed forces then you qualify for a VA loan which is a loan that is backed by the government.
Demographic information is required by the government in the United States to help identify if there is any discrimination that is taking place, however this is not a required question.
The last section is Loan originator information. For this section, the borrower does not have to fill anything out, this section is for the lender.
4. Can you still use the old 1003?
If you are not part of a legacy program then you need to use the new 1003, the date for this was April 30, 2021.
5. How long will it take to complete the 1003?
To complete the application it will take around 15 minutes, however with all the work that the lender has to do it can take three to 7 days but could sometimes be longer.
6. Can unmarried borrowers use the same 1003?
Unmarried borrowers can use the same 1003 if they are filing a joint application. It is discrimination if unmarried are filing a 1003 for joint ownership and they require them to fill out two separate forms.
7. What does H mean for property status on the 1003?
H stands for hold, Hold means that it has been taken off the active market and it has the intention of getting put on the active market again in th future.
8. Is a 1003 required for a HELOC?
The 1003 is not required for a HELOC, it is only required if the mortgage is getting sold to investors.
9. Does the initial 1003 have to be signed by the borrower?
The initial 1003 can be completed by the borrower or the loan organizer for the borrower. The initial 1003 should be signed by every borrower who is involved.