#WhackedOutWednesday – Complete completely a 1003, a lender app, or anything that is a form to turn in. Seriously, this is elementary things, but yet grow ups don’t know how to fill in a form! Like seriously, if a form has a field to be filled in, put something in it! Even if it’s N/A – Something is better than skipping it. And you may just find that you have an important question you needed to ask or answer.
More importantly, with a complete 1003, DU will not give you errors. Well, I should say “as much”! Some of the common errors in 1003’s today for #WhackedOutWednesday will hopefully help you learn to look at these sections to begin with. Let’s list them;
- Type of loan, I know this seems basic but it’s true, sometimes people get in the habit of checking FHA, when it’s actually a conventional loan. Make sure the boxes at the top of the 1003 in the beginning are correct.
- Name, Phone number and Email address; Again you would think this is elementary but the most common is a 1003 with no email address. Let’s recap this whole TRID thing, you can’t do a home loan without an email basically, or you wait longer to close. So if a client doesn’t have an email and they are that old fashioned, open them a free gmail account. It’s basically required and you will thank yourself later in the loan process (ie CD time)!
- Work and Address history – Remember on a 1003 the underwriter is looking for the last “two year” work history. No matter what the program or how long you want to prove income income etc. There needs to be a work history and an address history (rent or owned) for a two year period on the 1003. Simple.
- DOWN PAYMENT TYPE – On purchases I highlight this, as a function of DU it reads risk based on weather the down payment is marked from Checking savings or as a GIFT! If you have a gift and you don’t select that upfront, you could begin a loan and then later on find out your loan isn’t approved. (*reiterating to fill in the 1003 correctly)
- REO section – It’s funny but many professional processors even hate this section and skip it. If there is a mortgage on the credit report, that means you must tie that loan to an REO in the Real Estate Owned section. Simple to do, but commonly missed. OH, and if you have free and clear homes, make sure you assign the “taxes and insurance” on that property to the home so that DTI shows right. So basically if they have a home fill out the REO section. Wow what a concept.
- Declaration Questions – Including all HMDA /ECOA info. So that last page, that asks if they are Indian or Asian yeah that one. Mark it up, it’s needed for your bosses call reports anyhow. (form they fill in and send in to tell the government whom they have been taking apps with) – Bottom line, make sure you attempt to have all boxes marked on this page. It is imperative that the 1003 is accurate here as some of these boxes can trigger different approval levels. And more conditions for sure.
No matter what, if you’re in Wholesale or Retail, the 1003 is like your bible to a loan. It’s the holy grail that makes or breaks someone’s financing if not completely and accurately taken to begin with. DIG DEEP – My advice, is anytime you see something not “normal” ask questions – LOTS OF THEM! Do NOT be affraid to ask your client WHY? Why did you have a job gap? Why did you sell that home, where did the money go? Can you source any and all large deposits in the last 60 days etc? Below I souce the 6 top 1003 mistakes for #WhackedOutWednesday – It’s longer than normal however, take notes and implement is my suggestion! #SellWell
It is WHACKED OUT that sometimes mortgage pro’s half ask it on the NUMBER 1 thing that is part of their job. Filling in the 1003. Funny in a way, but trust me, the more accurate, the more questions you get asked, and the more detective work you attempt to do in this stage – The MORE LOANS YOU WILL CLOSE! Meaning fund and get paid on. So my advice SLOW DOWN, and master your craft. It’s the one thing that can and will dictate your paycheck! #SellWell