Mortgage loan applications require information about the type of loan sought; the property wanted; the applicant's personal information; his employment history, income, assets and financial obligations; and the disclosure of past or current financial hardships, according to Bankrate. The standard mortgage application, Fannie Mae Form 1003, has eight sections for the prospective borrower and loan officer to complete.Continue Reading
Section 1 requires the details of the type of loan and its subsequent terms, explains Bankrate. Typically the loan officer completes this portion. The prospective property's information and the purpose of the loan goes in section 2. Because the applicant does not yet know which property he wants to purchase, he cannot complete much of this section.
Sections 4 and 5 request financial information of the applicant pertaining to his job history for the past two years, monthly income and household expenses. Mortgage applications gather details of assets, such as other property or land owned and bank accounts, in the sixth section, notes Bankrate. This section also accounts for debts and other liabilities, including student loan repayment, alimony and child support obligations.
The applicant does not complete section 7 of Fannie Mae's Form 1003. It requires the details of the loan transaction, which the applicant does not yet know. The final portion of a mortgage application allows the prospective borrower the opportunity to disclose any information about bankruptcies, lawsuits or financial grievances, reports Bankrate.Learn more about Credit & Lending