1003 Mortgage Application: The Purpose Of A 1003 Mortgage Application Form

If you have ever applied for a mortgage before, odds are you’ve heard about or even completed the 1003 mortgage application form.

But if you haven’t, you can learn all you need to know about the purpose of a 1003 mortgage application form and how to fill in the form appropriately.

1003 Mortgage Application Form: What is it and why do you need one?

The 1003 mortgage application form is the most widely used and accepted form that all mortgage lenders in the US use to elicit important information from potential borrowers.

As a rule of thumb, borrowers are required to complete the basic form or its alternative. Some mortgage lenders are known for using other types of forms.

Others just request for essential borrowers’ information such as who they are as well as the type and value of the property they are interested in. Typically, many lenders use the 1003 mortgage application form.

In most cases, the 1003 form is filled out twice when a borrower is seeking for a mortgage loan.

The first time the form is completed during the first application and the second time at closing to ascertain what is involved in the loan.

Upon request, some lenders permit borrowers to fill in the form wherever they want. Others help out borrowers individually in person or over the phone.

Regardless of how you choose to complete the form, it is important to understand what is required in the form before you start completing it. 

A Brief History of the 1003 Form

The Federal National Mortgage Association (Fannie Mae) created the 1003 form otherwise known as the Uniform Residential Loan Application as a universal form for the mortgage industry.

Fannie Mae and Freddie Mac (the Federal Home Loan Mortgage Corp) are lending institutions established by congress to sustain financial resources in the mortgage market.

These two institutions buy mortgages from separate lenders and keep the loans or sell them to other institutions as an aspect of a mortgage backed security (MBS).

When individual lenders sell these mortgage debt to federally supported institutions, it gives them the financial resources required to continue providing loans.

1003 Mortgage Application Form Purpose

Just like every other important transactions, mortgages are documented. This documentation is done based on Fannie Mae and Freddie Mac’s requirements.

Since the two institutions recommend borrowers to use the Form 1003 or Form 65, (Freddie Mac’s alternative), for mortgages they intend to buy, it is easier for lenders to make use of the right form at the beginning rather than copying data from a basic form to a 1003 at the period they want to sell the mortgage. That’s the purpose of a 1003 mortgage application form.

Information That Reflects Credit Worthiness

The 1003 form contains all the data that a mortgage lender requires to figure out if a potential borrower is creditworthy or not.

The form contains information about who the potential borrower is. Although some lenders do not need employment data to determine if a borrower is eligible for a mortgage or not, the 1003 form contains a space for potential borrowers two years of employment history.

Once provided, the information is used as a measure of determining the financial security and creditworthiness of the potential borrower.

The form also mandates a borrower to reveal the entire monthly income of his or her household and his usual monthly costs.

Furthermore, the 1003 form asks for a specified list of the potential borrower’s assets and liabilities to figure out if they are financially capable of making mortgage payments monthly.

As expected, potential borrowers’ assets might be anything that lenders can use or sell to replace the payments of loans.

Potential borrowers are also expected to disclose to borrowers if they have any other debt or loan apart from the mortgage payments. Such debt could be an automobile loan, student loan, or credit card debt etc.

Likewise, if the borrower has any other property, as a second home or as an investment, he or she is mandated to disclose such as well as any other mortgage they are responsible for.


The purpose of a 1003 mortgage application form is to elicit all the relevant information about a potential borrower that a lender needs to make a decision.

The form is also a user-friendly form. If you run into any trouble while completing it, don’t hesitate to reach out to your lender for assistance.

Williams Oleije

Williams Oleije

Williams Oleije is an Inbound Marketer, and a pop culture enthusiast. He's an avid researcher about how digital media is transforming marketing in several industries.

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