What is the 1003 form?
The 1003 form is a form that is used when trying to get a mortgage it is often long and can take a lot of time. The 1003 form has everything on it that the calculator will need to make a few choices. Some of those choices include whether or not to lend money, how much money they can lend with what down payment, and what their interest rate will be. The Fed sets the interest but the calculator can choose a different one based on a lot of things such as income, credit history, credit score, as well as others. The credit history is a big factor, credit history is the history of the payments that you have made it stays on your record for 7 years. The most important thing is that the payments are made on time.
What is a digital 1003?
The Digital 1003 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.
How many sections are in a 1003 form?
The 1003 form has a total of 9 sections which include borrower information, financial information- 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, as well as 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.
The acknowledge and agreements 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 it helps identify if there is any discrimination that is taking place. However, this is not a required question.
The last section is Loan originator information which the borrower does not have to fill out, this section is for the lender.