LOAN APPLICATION-By Sections

The Uniform Residential Loan Application is a standard used by most lenders and sanctioned for use by two quasi-governmental lenders; FANNIE MAE has named this form 1003 and FREDDIE MAC form 65.

At the top of this form there is a statement that says this form is "designed to be completed by the borrow(s) with the Lenders assistance."  This point is well taken: DON’T be afraid to ask our Loan Consultants to help you on this application.  The Application Check List section will now become useful to complete this loan application.

Section I : Type of mortgage and Terms of Loan

This first area asks for the type of mortgage you are applying for and are listed as VA, FHA, Conventional, FMHA and Other. Most borrowers will be qualifying for a conventional type of loan; if not sure leave blank.  Then there is the amortization type; fixed, graduated payment, adjustable, or other.  Eagle Lending has provide two sections, Types of Loan Products and How Much Can I Afford to assist with this question; but if you still feel uncomfortable, we are here to help.

 

Section II : Property Information and Purpose

The address of the subject property that you are obtaining a loan; address of home your purchasing, address of rental investment property, or address of your present home, if your refinancing.  Also provide the legal description of the subject property with APN, if possible to obtain.

If you are obtaining a construction to permanent (not very often is line used) complete this line.  If you are obtaining a refinance loan, complete this line.  If you are obtaining a purchase loan, don’t complete either line.

 

Section III: Borrower Information

Now lets get down to business, name rank and serial number. This section asks for information on Social security number (s), years in school, and past and present addresses the past two years.

 

Section IV: Employment Information

Provide the employment history for borrower(s), where you are working, your titles, numbers of years on the job and number of years in your profession (line of work).  If borrower(s) have less than two years on the present job, complete the prior employer history.

 

Section V: Monthly Income and Combined Housing Expense Information

This is where the rubber meets the road.  This is another area where Eagle Lending Loan Consultants can assist you in determining the best loan product for your situation, and if you need assistance, provide you the monthly payment calculation.

Hazard (Fire) insurance for the property is always required by the lender to protect his investment.  Mortgage (MI) Insurance is not required if you are putting 80% or more as a down payment or you have more than 80% equity in the subject property.

Lenders are looking for their magic Housing Ratio’s based on income to monthly payments.  Your total monthly payment can not exceed 30-40% of your borrower(s) income.  The housing ratio varies depending on loan programs and Loan to Value (LTV).

Basically, the more at risk the lender is the lower the housing ratio number.  A 90-97% LTV will require a 32% or less housing ratio, but there are first time buyer programs that will go up to 36-38% housing ratio.  First time home buyers (No ownership in the last three years) should ask our loan consultants about Mortgage Credit Certificates (MCC) to see if they are available in you county.  An 80% LTV or less can normally go as high as 40% and a 70% LTV as high as 42% housing ratio.

 Section VI: Assets and Liabilities

The asset section is divided in two; liquid and non-liquid assets.  Liquid assets include the cash deposits in checking and saving accounts, securities, 401k programs and life insurance cash values.  If you are purchasing a home, it includes funds you have in a trust account for seller or builder.

Non-liquid assets are future Notes due, market value of other real estate owned, net worth of business owned (BUT only if you have supporting documentation from your CPA or leave this blank).  Provide an educated guess in the area on vehicles and misc. assets; like furniture, antiques, jewelry, etc

Liabilities are all your monthly bills showing unpaid balance and monthly payments for, vehicles, RV’s, loans on other property and credit cards.  DO NOT fill out the liabilities area, it will be filled out by Eagle Lending loan processors after a credit report has be run.  If applicable; include alimony/child support, or separation maintenance payments, childcare, union dues.

Sections VII through X

Section VII is to be completed by Eagle Lending, "details of the transaction". Complete section VIII "Declarations", which is a series of questions.  Section IX is lawyer talk stating you completed the form honestly and acknowledged  as Borrower and/or Co-borrower.  The last section is voluntary and may be completed if you so desire.

  Glossary

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