ACTIVITY: Final Paper Part 5 (Loan Application Narrative)
For this activity, we continue writing another section for our final paper. Study the 1003 Loan Application you completed in Module 8 and write out the details in sentence form. Write 5 paragraphs following the template below. Note the loan processing section will need a checklist! Scroll down to the example as shown below.
Instructions
Write five paragraphs as shown below in the template. First, write one paragraph summarizing the 1003 loan application for your subject borrowers, which you completed in Module 8. Then, write two paragraphs detailing the 1003 loan application form for your subject borrower, and another two paragraphs explaining the loan processing needed for this application. Cite the textbook once in each paragraph by including the page numbers in parenthesis. You will submit here in this assignment as a text entry. Click the “Submit” button, then insert your paragraphs into the text box, and click “Submit” again down at the bottom.
Loan Application
1003 Loan Application Form
Loan Processing
Supplemental Resources
Sample Loan Document List
Sample Loan Docs.doc Download Sample Loan Docs.doc
Mortgage loan differences
How FHA and VA Loans Stack Up: https://www.military.com/money/home-ownership/how-fha-and-va-loans-stack-up.htmlLinks to an external site.
USDA Loans (select from Single Family Housing GUARANTEED or DIRECT): https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.doLinks to an external site.
Jumbo vs. Conventional Loans (Conforming & Non-Conforming): https://www.investopedia.com/articles/personal-finance/061815/jumbo-vs-conventional-mortgages-how-they-differ.aspLinks to an external site.
Loan Limits by Area: https://www.fanniemae.com/singlefamily/loan-limits#Links to an external site.
Example
Example for demonstration purposes only. DO NOT COPY. Please write your own assignment in your own words.
Ima Student
January 1, 2022
BRE-126
Real Estate Finance by Huber
Module 10, chapter 10
Loan Application
The 1003 loan application was completed for borrower Mickey Mouse and co-borrower Minnie Mouse. The Fannie Mae 1003 loan application is typically completed online by the mortgage loan officer (MLS) while interviewing the borrowers (p. 198). It is a four- or five-page form with 10 sections that must be completed in full. It is also known as the Freddie Mac form 65 and is available in MLS software apps. Please refer to the completed loan application for Mickey and Minnie Mouse shown in Appendix A of this report.
1003 Loan Application Form
Mickey and Minnie Mouse’s application was completed for the house they are purchasing located at 1961 Rams Road in Victorville, California. They applied for an FHA loan with 3.5% downpayment and will hold title jointly as Community Property with Right of Survival. Their employment information was completed with Mickey’s current job at Tile Manufacturing Plant earning a monthly salary of $4,570, plus a prior job at Southern California Logistics Airport. His previous job must be listed to document two years of employment as required (p. 198). Minnie’s information was completed to reflect both her full-time job at Chick-Fil-A and her part-time self-employment as Minnie Mouse Loan Document Signings.
Loan Processing
The loan application package is submitted to the underwriters in a specific stacking order as outlined on pages 210-211. The 14 items will be included in the following sequence:
Submission sheet
Transmitting (form 1008)
Cover letter (from the lender)
Loan application (form 1003)
ETC.
In addition, there are more disclosures as listed on page 221. Some of those disclosure include
Uniform Residential Loan Application
This application is designed to be completed by the applicant(s) with the Lender’s assistance. Applicants should complete this form as “Borrower” or “Co-Borrower”, as
applicable. Co-Borrower information must also be provided (and the appropriate box checked) when
the income or assets of a person other than the “Borrower”
(including the Borrower’s spouse) will be used as a basis for loan qualification or
the income or assets of the Borrower’s spouse or other person who has community
property rights pursuant to state law will not be used as a basis for loan qualification, but his or her liabilities must be considered because the spouse or other person
has community property rights pursuant to applicable law and Borrower resides in a community property state, the security property is located in a community property
state, or the Borrower is relying on other property located in a community property state as a basis for repayment of the loan.
If this is an application for joint credit, Borrower and Co-Borrower each agree that we intend to apply for joint credit (sign below):
Mickey Mouse
Minnie Mouse
Borrower
Co-Borrower
I. TYPE OF MORTGAGE AND TERMS OF LOAN
Mortgage
Applied for:
VA
FHA
Amount
$
217,125
Agency Case Number
Conventional
Other (explain):
USDA/Rural
Housing Service
Amortization Type:
Interest Rate
No. of Months
Fixed Rate
360
2.0% %
GPM
Lender Case Number
URLA777
Other (explain):
ARM (type):
II. PROPERTY INFORMATION AND PURPOSE OF LOAN
Subject Property Address (street, city, state, & ZIP)
No. of Units
1
1961 Rams Road, Victorville, CA 92395
Legal Description of Subject Property (attach description if necessary)
Year Built
1995
Lot 5, Block 75, Sunshine Neighborhood tract
Purpose of Loan
Purchase
Refinance
Construction
Construction-Permanent
Property will be:
Primary Residence
Other (explain):
Complete this line if construction or construction-permanent loan.
Year Lot
Original Cost
Amount Existing Liens
(a) Present Value of Lot
Acquired
$
$
$
Complete this line if this is a refinance loan.
Original Cost
Amount Existing Liens
Year
Acquired
$
Title will be held in what Name(s)
(b) Cost of Improvements
Total (a+b)
$
$
Describe Improvements
Purpose of Refinance
$
Secondary Residence
made
Cost: $
Manner in which Title will be held
Investment
to be made
Estate will be held in:
Fee Simple
Leasehold(show
expiration date)
Source of Down Payment, Settlement Charges and/or Subordinate Financing (explain)
III. BORROWER INFORMATION
Borrower
Co-Borrower
Borrower’s Name (include Jr. or Sr. if applicable)
Co-Borrower’s Name (include Jr. or Sr. if applicable)
Mickey Mouse
Minnie Mouse
Social Security Number Home Phone (incl. area code) DOB (mm/dd/yyyy) Yrs. School Social Security Number Home Phone (incl. area code) DOB (mm/dd/yyyy) Yrs. School
123-45-6789
(123) 456-7890
Married (includes registered domestic partners)
Unmarried (includes single, divorced, widowed)
Separated
January 2, 1985 Graduated987-65-4321
from high school
Dependents (not listed by
No.
Ages
February 1, 1988Graduated from hig
Co-Borrower)
Married (includes registered domestic partners)
1
Unmarried (includes single, divorced, widowed)
9
Separated
Dependents (not listed by
Borrower)
No.
Ages
Own
Rent 3 No. Yrs.
If residing at present address for less than two years, complete the following:
Former Address (street, city, state, ZIP)
Own
Rent
No. Yrs. Former Address (street, city, state, ZIP)
Own
Rent
No. Yrs.
Former Address (street, city, state, ZIP)
Own
Rent
No. Yrs.
Present Address (street, city, state, ZIP/ country)
Own
(123) 456-7891
Rent 3 No. Yrs. Present Address (street, city, state, ZIP/ country)
123 Main Street, Apple Valley, CA 98765
123 Main Street, Apple Valley CA 98765
Mailing Address, if different from Present Address
Mailing Address, if different from Present Address
PO Box 123, Apple Valley, CA 98765
PO Box 123, Apple Valley CA 98765
Own
Rent
No. Yrs. Former Address (street, city, state, ZIP)
Borrower
Uniform Residential Loan Application
Freddie Mac Form 65 7/05 (rev. 6/09)
Page 1
Co-Borrower
Mickey Mouse
Minnie Mouse
Fannie Mae Form 1003 7/05 (rev. 6/09)
Borrower
Name & Address of Employer
Self Employed
IV. EMPLOYMENT INFORMATION
Yrs. on this job
Name & Address of Employer
1
Tile Manufacturing Plant
19959 Talihina Rd, Apple Valley, CA 92307
Co-Borrower
Self Employed
Yrs. on this job
4
Chick-Fil-A Restaurant
Yrs. employed in this
line of work/profession 12180 Mariposa Rd, Victorville, CA 92395
Yrs. employed in this
line of work/profession
5
4
Position/Title/Type of Business
Business Phone (incl. area code)
Position/Title/Type of Business
Business Phone (incl. area code)
Office Manager
(123) 654-9876
Shift Leader
(123) 654-9875
If employed in current position for less than two years or if currently employed in more than one position, complete the following:
Name & Address of Employer
Self Employed
Dates (from-to)
Name & Address of Employer
From 1 year ago to 5 years ago
Southern California Logistics Airport
18374 Phantom W, Victorville, CA 92394
Monthly Income
$ 4,570
Self Employed
Dates (from-to)
Present 2 years ago
Minnie Mouse Loan Document Signings
123 Orchid Street, Apple Valley, CA 98765
Monthly Income
$ 3,850
Position/Title/Type of Business
Business Phone (incl. area code)
Position/Title/Type of Business
Business Phone (incl. area code)
Office Manager
(123) 654-7890
Notary Public
(123) 654-9987
Name & Address of Employer
Self Employed
Name & Address of Employer
Dates (from-to)
Self Employed
Monthly Income
$
Position/Title/Type of Business
Name & Address of Employer
Monthly Income
$
Business Phone (incl. area code)
Self Employed
Position/Title/Type of Business
Business Phone (incl. area code)
Name & Address of Employer
Dates (from-to)
Self Employed
Name & Address of Employer
Business Phone (incl. area code)
Self Employed
Position/Title/Type of Business
Business Phone (incl. area code)
Name & Address of Employer
Dates (from-to)
Self Employed
Monthly Income
$
Position/Title/Type of Business
Dates (from-to)
Monthly Income
$
Monthly Income
$
Position/Title/Type of Business
Dates (from-to)
Dates (from-to)
Monthly Income
$
Business Phone (incl. area code)
Position/Title/Type of Business
Business Phone (incl. area code)
V. MONTHLY INCOME AND COMBINED HOUSING EXPENSE INFORMATION
Gross
Monthly Income
Base Empl. Income*
Borrower
$
4,570
Co-Borrower
$
3,850
Total
$
8,420
Combined Monthly
Housing Expense
Rent
Present
$
Proposed
2,150
Overtime
First Mortgage (P&I)
Bonuses
Other Financing (P&I)
Commissions
Hazard Insurance
50
50
Dividends/Interest
Real Estate Taxes
187.50
225
Net Rental Income
Mortgage Insurance
50
50
Other (before completing,
*
$
Other:
1,500
$
4,570
$
5,350
$
9,920
Total
$
2,150
$
1,234.34
Self Employed Borrower(s) may be required to provide additional documentation such as tax returns and financial statements.
Describe Other Income
Notice: Alimony, child support, or separate maintenance income need not be revealed if the
Borrower (B) or Co-Borrower (C) does not choose to have it considered for repaying this loan.
B/C
C
909.34
Homeowner Assn. Dues
see the notice in “describe
other income,” below)
Total
434.50
Monthly Amount
$
Self Employed
Borrower
Uniform Residential Loan Application
Freddie Mac Form 65 7/05 (rev. 6/09)
Page 2
Co-Borrower
Mickey Mouse
Minnie Mouse
1,500
Fannie Mae Form 1003 7/05 (rev. 6/09)
VI. ASSETS AND LIABILITIES
This Statement and any applicable supporting schedules may be completed jointly by both married and unmarried Co-borrowers if their assets and liabilities are sufficiently joined
so that the Statement can be meaningfully and fairly presented on a combined basis; otherwise, separate Statements and Schedules are required. If the Co-Borrower section
was completed about a non-applicant spouse or other person, this Statement and supporting schedules must be completed by that spouse or other person also.
x Jointly
Completed
Not Jointly
ASSETS
Description
Cash deposit toward
purchase held by:
Cash or
Market Value
Liabilities and Pledged Assets. List the creditor’s name, address and account number for all outstanding
debts, including automobile loans, revolving charge accounts, real estate loans, alimony, child support,
stock pledges, etc. Use continuation sheet, if necessary. Indicate by (*) those liabilities which will be
satisfied upon sale of real estate owned or upon refinancing of the subject property.
$
Monthly Payment &
Months Left to Pay
$ Payment/Months
LIABILITIES
List checking and savings accounts below
Name and address of Company
Name and address of Bank, S&L, or Credit Union
5,500
Acct. no.
$
Stocks & Bonds (Company
name/number description)
$
Life insurance net cash value
250
Acct. no. 123-45698
Name and address of Company
$ Payment/Months
7,000
$
Toyota Credit Union
19001 South Wstn Avenue Ms T20
Torrance, CA 90509
Second Big Bank, 789 Bear Valley Road, Victorville
CA 23456
Acct. no. 456-78932
$
Name and address of Bank, S&L, or Credit Union
$
Chevy Credit Union
2300 Clayton Road, Concord, CA 94520
First Savings Bank, 456 River Road, Apple Valley CA
12345
Acct. no. 789-123456
$
Name and address of Bank, S&L, or Credit Union
Unpaid Balance
7,000
350
Acct. no. 132-65489
Name and address of Company
$ Payment/Months
10,000
$
Macys Credit Card
P.O. Box 9001094 Louisville, KY
40290-1094
100
2,000
Acct. no. 321-78965
Name and address of Company
$ Payment/Months
$
Acct. no.
Name and address of Company
$ Payment/Months
$
Acct. no.
Name and address of Company
$ Payment/Months
$
$
10,000
Face amount: $
Subtotal Liquid Assets
$
22,500
Real estate owned (enter market value $
from schedule of real estate owned)
Vested interest in retirement fund
$
20,000
Net worth of business(es) owned
(attach financial statement)
Automobiles owned (make and year)
$
3,000
2015 Chevy
15,000
2020 Toyota
20,000
Other Assets (itemize)
Acct. no.
Alimony/Child Support/Separate
Maintenance Payments Owed to:
$
$
0
Job-Related Expense (child care, union dues, etc.) $
$
0
Total Monthly Payments
Total Assets a.
$
80,500
=>
Net Worth
(a minus b)
$
$
Total Liabilities b.
61,500
Schedule of Real Estate Owned (if additional properties are owned, use continuation sheet)
Property Address (enter S if sold, PS if pending
sale or R if rental being held for income)
Type of
Property
Totals
Present
Amount of
Gross
Market Value Mortgages & Liens Rental Income
Mortgage
Payments
$
19,000
Insurance,
Maintenance,
Net
Taxes & Misc. Rental Income
$
$
$
$
$
$
$
$
$
$
$
$
List any additional names under which credit has previously been received and indicate appropriate creditor name(s) and account number(s):
Alternate Name
Creditor Name
Account Number
Mickey Mouse
Co-Borrower Minnie Mouse
Borrower
Uniform Residential Loan Application
Freddie Mac Form 65 7/05 (rev. 6/09)
Page 3
Fannie Mae Form 1003 7/05 (rev. 6/09)
VII. DETAILS OF TRANSACTION
a. Purchase price
$
VIII. DECLARATIONS
225,000 If you answer “Yes” to any questions a through i,
Borrower Co-Borrower
please use continuation sheet for explanation.
b. Alterations, improvements, repairs
Yes No
Yes No
(1) What type of property did you own-principal residence (PR),
second home (SH), or investment property (IP)?
N/A
N/A
(2) How did you hold title to the home-solely by yourself (S),
jointly with your spouse (SP), or jointly with another person (O)?
N/A
N/A
a. Are there any outstanding judgments against you?
c. Land (if acquired separately)
b. Have you been declared bankrupt within the past 7 years?
d. Refinance (incl. debts to be paid off)
c. Have you had property foreclosed upon or given title or deed in lieu thereof
in the last 7 years?
e. Estimated prepaid items
f. Estimated closing costs
6,750 d. Are you a party to a lawsuit?
g. PMI, MIP, Funding Fee
e. Have you directly or indirectly been obligated on any loan which resulted in
foreclosure, transfer of title in lieu of foreclosure, or judgment?
h. Discount (if Borrower will pay)
31,750
i. Total costs (add items a through h)
j. Subordinate financing
k. Borrower’s closing costs paid by Seller
(This would include such loans as home mortgage loans, SBA loans, home improvement
loans, educational loans, manufactured (mobile) home loans, any mortgage, financial
obligation, bond, or loan guarantee. If “Yes,” provide details, including date, name, and
address of Lender, FHA or VA case number, if any, and reasons for the action.)
3,000 f. Are you presently delinquent or in default on any Federal debt or any other
loan, mortgage, financial obligation, bond, or loan guarantee?
l. Other Credits (explain)
If “Yes,” give details as described in the preceding question.
g. Are you obligated to pay alimony, child support, or separate maintenance?
h. Is any part of the down payment borrowed?
i. Are you a co-maker or endorser on a note?
———————————————————–j. Are you a U. S. citizen?
k. Are you a permanent resident alien?
l. Do you intend to occupy the property as your primary residence?
If “Yes,” complete question m below.
m. Loan amount (exclude PMI, MIP,
Funding Fee financed)
217,125
m. Have you had an ownership interest in a property in the last three years?
n. PMI, MIP, Funding Fee financed
o. Loan amount (add m & n)
217,125
p. Cash from/to Borrower (subtract j, k, l &
o from i)
228,750
IX. ACKNOWLEDGEMENT AND AGREEMENT
Each of the undersigned specifically represents to Lender and to Lender’s actual or potential agents, brokers, processors, attorneys, insurers, servicers, successors and assigns and
agrees and acknowledges that: (1) the information provided in this application is true and correct as of the date set forth opposite my signature and that any intentional or negligent misrepresentation of this information contained in this application may result in civil liability, including monetary damages, to any person who may suffer any loss due to reliance upon any
misrepresentation that I have made on this application, and/or in criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States
Code, Sec. 1001, et seq.; (2) the loan requested pursuant to this application (the “Loan”) will be secured by a mortgage or deed of trust on the property described in this application; (3) the
property will not be used for any illegal or prohibited purpose or use; (4) all statements made in this application are made for the purpose of obtaining a residential mortgage loan; (5) the
property will be occupied as indicated in this application; (6) the Lender, its servicers, successors or assigns may retain the original and/or an electronic record of this application, whether
or not the loan is approved; (7) the Lender and its agents, brokers, insurers, servicers, successors and assigns may continuously rely on the information contained in the application, and
I am obligated to amend and/or supplement the information provided in this application if any of the material facts that I have represented herein should change prior to closing of the
Loan; (8) in the event that my payments on the Loan become delinquent, the Lender, its servicers, successors, or assigns may, in addition to any other rights and remedies that it may
have relating to such delinquency, report my name and account information to one or more consumer credit reporting agencies; (9) ownership of the Loan and/or administration of the Loan
account may be transferred with such notice as may be required by law; (10) neither Lender nor its agents, brokers, insurers, servicers, successors or assigns has made any representation or warranty, express or implied, to me regarding the property or the condition or value of the property; and (11) my transmission of this application as an “electronic record” containing
my “electronic signature,” as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or my facsimile transmission of this application
containing a facsimile of my signature, shall be as effective, enforceable and valid as if a paper version of this application were delivered containing my original written signature.
Acknowledgement. Each of the undersigned hereby acknowledges that any owner of the Loan, its servicers, successors and assigns, may verify or reverify any information
contained in this application or obtain any information or data relating to the Loan, for any legitimate purpose through any source, including a source named in this application
or a consumer reporting agency.
Borrower’s Signature
Date
Co-Borrower’s Signature
Date
X Mickey Mouse
March 6, 2024
X Minnie Mouse
March 6, 2024
X. INFORMATION FOR GOVERNMENT MONITORING PURPOSES
The following information is requested by the Federal Government for certain types of loans related to a dwelling in order to monitor the lender’s compliance with equal credit
opportunity, fair housing and home mortgage disclosure laws. You are not required to furnish this information, but are encouraged to do so. The law provides that a Lender may
not discriminate either on the basis of this information, or on whether you choose to furnish it. If you furnish the information, please provide both ethnicity and race. For race, you
may check more than one designation. If you do not furnish ethnicity, race, or sex, under Federal regulations, this lender is required to note the information on the basis of visual
observation and surname if you have made this application in person. If you do not wish to furnish the information, please check the box below. (Lender must review the above
material to assure that the disclosures satisfy all requirements to which the lender is subject under applicable state law for the particular type of loan applied for.)
BORROWER
I do not wish to furnish this information
CO-BORROWER
I do not wish to furnish this information
Ethnicity:
Hispanic or Latino
Ethnicity:
Hispanic or Latino
Race:
American Indian or
Asian
Alaska Native
Native Hawaiian or Other Pacific Islander
Race:
American Indian or
Asian
Alaska Native
Native Hawaiian or Other Pacific Islander
Sex:
Female
Sex:
Female
Not Hispanic or Latino
Black or
African American
White
Male
Not Hispanic or Latino
Black or
African American
White
Male
To be Completed by Loan Originator:
This information was provided:
In a face-to-face interview
In a telephone interview
Loan Originator’s Signature
By the applicant and submitted by fax or mail
By the applicant and submitted via e-mail or the internet
Date
X Master Muhammad
Loan Originator’s Name (print or type)
March 6, 2024
Loan Originator Identifier
Loan Originator’s Phone Number (including area code)
Master Muhammad
777777
603-555-1234
Loan Origination Company’s Name
Loan Origination Company Identifier
Loan Origination Company’s Address
Disney Bank
Bank#777111
19959 Talihina Rd Apple Valley, CA 92307
Uniform Residential Loan Application
Freddie Mac Form 65 7/05 (rev. 6/09)
Page 4
Fannie Mae Form 1003 7/05 (rev. 6/09)
