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You will first need to complete a 1003 form in order to be preapproved for a mortgage. The 1003 application, also referred to as the uniform residential loan application or URLA for short, provides your lender with the data they need to assess your eligibility for the loan you’re requesting.
You can avoid surprises during the mortgage process by gathering the necessary financial documentation in advance and knowing what the 1003 form requests. This will help you complete the application as accurately as possible.
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What is a uniform residential loan application?
The government-sponsored enterprises (GSEs) that underpin the mortgage market, Fannie Mae and Freddie Mac, created the uniform residential loan application. The purpose of the form is to gather the data lenders require in order to evaluate your creditworthiness for a mortgage loan.
Additionally, the form gathers data mandated by the Home Mortgage Disclosure Act (HMDA) to verify that lenders are providing fair lending practices and to look for any discriminatory patterns.
Make sure all your information is correct to prevent preapproval delays>
The accuracy of your mortgage preapproval depends on the information you supply. It will help avoid delays if you provide accurate information because lenders can and will verify everything. Another thing to keep in mind is that lenders use the data from your application to provide you with a rate quote; if you later alter the information, your interest rate may increase.
Read more about the mortgage preapproval process.
What information is needed on the 1003 form?
Your personal information. Two years’ worth of address records, in addition to your legal name, Social Security number, and birthdate, are required.
Your finances. Your income, assets, and monthly debt payments are required by lenders. They will also require details regarding any payments you are legally obligated to make, such as child support or alimony.
Reason for the loan and type of home. If you are purchasing or refinancing a home, the lender must know if you intend to live there, use it as an investment, or only use it for vacations. The kind of residence matters as well, particularly when the lender is evaluating your application to determine an interest rate. Mortgage rates for single-family homes are normally lower than those for multifamily, manufactured, or condominium properties.
Acknowledgments. You will be asked a number of questions concerning anything from whether you have ever owned real estate to whether you have ever filed for bankruptcy within the last seven years or if you currently pay alimony or child support.
Military service. This part is particularly crucial if you’re requesting a loan that is guaranteed by the S. Department of Veterans Affairs (VA). Lenders who accept VA loans must ascertain whether you have previously had a VA loan and, if so, if it has been repaid.
Demographics. The federal government needs this data in order to monitor lending practices and prevent discrimination.
Loan originator. Once you’ve chosen a lender, your loan officer’s name, contact information, and license number will show up on the application. This field will remain empty until you select a lender to collaborate with.
The 1003 loan application form section by section
Here’s a breakdown of what info is requested in each section of the 1003 form. Watch for the 
symbol to spot information you should pay close attention to so you avoid delays in the mortgage process.
Section 1: Borrower Information
Personal information, such as employment, income, and previous addresses, are requested in this section.
Section 1a asks for personal details, including:
- Name, date of birth, Social Security number, and citizenship status
- Whether you’re applying on your own or with someone else
- Your marital status and how many dependents you have
- Contact information including cellphone, work phone and email address
- If you have lived at your current address for less than two years, please provide both your current and previous addresses.
If you’ve moved around a lot in the past two years, make sure you provide full, correct addresses and the dates you lived at each residence. Lenders match the addresses up with what appears on your credit report.
- Whether you own the house you presently reside in, rent, or live rent-free
Section 1b and 1c provide employment and income details including:
Your employment is verified and re-verified multiple times during the mortgage process. The contact information needs to be current to avoid delays before your closing.
- Details about any self-employment income
- Regardless of whether you work for a relative or are involved in the mortgage transaction
- Your current and prior monthly income
Lenders use your before-tax income to qualify, so always input the correct gross income here, or you may not qualify for the amount you’re applying for.
If you have worked in your current position for less than two years, Section 1d is applicable.
Don’t worry if you don’t have a two-year job history. You may be able to get a mortgage with a new job with proof you recently completed education or training related to the new position. Any gaps in employment for more than a few months may need to be explained.
You can list any additional forms of income you receive in Section 1e, such as:
- Alimony
- Child support
- Disability
- Public assistance
- Unemployment benefits
- Income sources that aren’t listed on the form
If your income includes earnings from a second job, you’ll generally need to prove you’ve been working the side hustle for at least two years.
Section 2: Financial Information — Assets and Liabilities
This section contains information about your assets, bank account balances, and the amounts and monthly payments associated with any debt you may have. This section is reviewed by lenders to see if you have sufficient funds for the down payment and closing costs, as well as enough income to pay off your current debt in addition to the new mortgage payment.
Assets with a cash value belong in Section 2a, while assets you intend to convert to cash or use to cover the purchase price belong in Section 2b. The table below shows the difference.
| Section 2a: Cash-value assets | Section 2b: Assets converted to cash or used toward purchase |
|---|---|
|
|
Your monthly debt obligations, both those that show up on your credit report and those that don’t, are covered in the next two sections.
| Section 2c: Standard debt | Section 2d: Other debt |
|---|---|
Revolving credit such as:
Installment debt including:
|
Monthly debt obligations including:
|
Section 3: Financial Information — Real Estate
You’ll describe the details of the other houses you own in Sections 3a through 3c, including:
- Monthly rent received
- Monthly payments, including property taxes, insurance and homeowners association fees
If you pay your HOA dues quarterly or yearly, divide the amount by four (if paid quarterly) or 12 (if paid annually) so the monthly amount appears here.
- How much the home is worth
- The balance of any existing mortgages
Section 4: Loan and Property Information
In this section, you provide the lender with information about the home you’re buying or refinancing as well as the reason behind your loan application.
Section 4a is where you add information about:
- How much you want to borrow
- The purpose of the loan
- The address of the property, how many units it has, and its estimated value
- Whether you plan to use the house as a second home, rent it out, or live in it
- Is the house suitable for both residential and commercial use (mixed-use)?
- Whether you’re financing a manufactured home
Most standard home loan programs only allow you to finance manufactured homes that are permanently attached to land you own.
If you’re applying for a mortgage and taking out any additional financing, such as a home equity line of credit (HELOC) or a home equity loan, Section 4b describes it.
Section 4c pertains to the anticipated rental income on the property you are purchasing, which may include a multifamily residence that you intend to occupy.
Information about gifts or grants you have received or will receive for the loan is specifically covered in Section 4d. They include gifts or grants from:
- A relative
- Your employer
- A nonprofit or local, state or federal government agency
- An unmarried partner
The questions regarding the home being financed, loan funds, and prior financial history are found in this section of the 1003 form.
A closer look at the house you’re purchasing and the funds you’re using is provided in Section 5a. This includes:
- Details about homes you’ve owned in the past
- If you are related to the person who sold the house you are purchasing
- Information about any other loans you’re applying for
- If there will be any other loans on the home
You will be asked specific questions regarding your credit history in Section 5b. Make sure to disclose information about:
Discuss any of these types of credit issues with your lender before applying for a loan. Most standard loan programs require a waiting period after a bankruptcy or foreclosure before you can be approved for a new mortgage.
- Lawsuits you’re involved in
- Any delinquent federal debt
- Cosigned loans
Section 6: Acknowledgments and Agreements
Pre-printed legal language appears in this section and states that you agree and acknowledge that:
- You are aware of the consequences if you don’t, and you have given accurate information.
- The home you are purchasing or refinancing will serve as security for the loan.
- In order to confirm the home’s value, the lender will request an appraisal.
- You may maintain electronic copies of all the documents pertaining to your loan.
- You are aware that lenders have the right to notify credit bureaus of any late payments.
- If you’re having problems paying your mortgage, you can speak with a counselor who has been approved by HUD for assistance.
- In order for the lender to approve your loan, you give them permission to use and share your information with other parties.
Section 7: Military Service
In this section, lenders authorized to provide VA loans obtain data regarding the active or past military service of borrowers or their surviving spouse.
Section 8: Demographic Information
Under the Home Mortgage Disclosure Act (HMDA), lenders are required to ask for and provide information about your race, sex, and ethnicity so that regulators can spot and stop instances of discriminatory lending. However, you’re not required to answer the questions.
Section 9: Loan Originator Information
Your loan originator will complete this form with information about the mortgage company, their license, and their contact details.
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Having a thorough checklist when house hunting could mean the difference between getting the house you want and losing out to a more prepared buyer.
FAQ
What is the purpose of the Uniform Residential loan Application?
The government-sponsored enterprises (GSEs) that underpin the mortgage market, Fannie Mae and Freddie Mac, created the uniform residential loan application. The purpose of the form is to gather the data lenders require in order to evaluate your creditworthiness for a mortgage loan.
When the loan is for refinance where is this information indicated on the Uniform Residential loan Application?
Section 4: Loan and Property Information In this section, you must specify the loan amount and purpose that you are requesting. As a result, you must specify if the loan will be used to buy a new property or to refinance an existing one.
What does Urla consist of?
The Borrower Information Form and the Lender Information Form are the two primary forms that comprise the URLA and together they constitute the entire loan application. However, depending on certain situations, additional forms may be required. These are the Continuation Sheet, Unmarried Addendum, and Additional Borrower form.
What does Urla mean in real estate?
The Federal Home Finance Agency has approved the use of the new Uniform Residential Loan Application, or URLA, by lenders who are accepting residential mortgage loan applications from borrowers with the intention of selling the closed loan to either Freddie Mac or Fannie Mae.
Read More :
https://www.lendingtree.com/home/mortgage/uniform-residential-loan-application-101/
https://singlefamily.fanniemae.com/delivering/uniform-mortgage-data-program/uniform-residential-loan-application