The Uniform Residential Loan Application

Apply for a mortgage and you will soon learn the joy of the loan application. The Uniform Residential Loan Application is the most commonly used document.

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The "URLA" represents an effort by the mortgage industry to create a one stop application that most lenders will accept. The document is known in the industry as Form 1003, and is often referred to by this name. Regardless, the URLA is not used to make life easier for you and me. It is used because buyers on the secondary mortgage market like to see it and use it as a basis for buying packages of loans.

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So, what makes up the loan application? Well, you may faint the first time you see it. It is long. It asks for lots of information. Frankly, it can be overwhelming. The key to getting through it is to break it down into manageable parts, so let's do just that.

Section one asks information about the type of mortgage and terms of the loan. In practical terms, how much do you want, at what interest rate and how long to pay it back? In truth, much of this section should be filled out by the broker or lender. If you don't understand a box, just leave it for them.

Section two asks for information on the property and purpose of the loan. The property information you must provide includes the address, legal description, and name title is to be held in. The purpose of the loan is a check the box situation, and most will check the "purchase" option unless they are refinancing or whatever.

Section three of the URLA is all about you - the borrower. Specifically, this is where you provide all the critical elements of your personal life. This includes your social security number, who you work for, where you live now, if you are married and so on. It is fairly par for the course with most other applications.

Section four focuses on your employment. You need to provide information on your employer, where they are and so on. This needs to be done for the last two years. If you have worked for the same company for those two years, you need only list that entity.

Section five is all about income and expenses. The lender wants a breakdown of your monthly income sources and monthly expenses. It is fairly straightforward, but remember to include everything. If you are self-employed, just put your average income for the previous 12 months.

Section six is the grumbling section. Here you must list all assets and liabilities. This means bank accounts, investment accounts, life insurance and so on. Basically, anything that is involved in your financial life. Oh, and you need to list phone numbers and addresses for each institution involved! In short, dig out those records and start rummaging about.

Section seven is the first time we get around to the loan itself. Essentially, you need to detail the amount you want to borrow, associated fees, your down payment and what you need.

Finally, the declarations section is filled out. The questions are self-explanatory. After that, simply sign the URLA and send it in! Yes, you have survived the application process. Well, the first step.

The Uniform Residential Loan Application

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