Tag Archives: 1003 Week

Thursdays Thoughts – New 1003 Week – Sections 5-6-7-8!

#ThursdaysThoughts – New 1003 Week! Today we wrap up the 1003 breakdown we’ve been doing all week and tomorrow I will do a compare contrast and point out the highlights I believe everyone should pay attention too.  This has been great breaking it down each day to help LO’s understand the new 1003.

Section 5 is the declaration question section, and is basically all brand new.  The current 1003 has 10 questions, the new one has 16!  Comparing the two, there’s 3 question on the current dec section that are not even asked, because they are asked elsewhere on the 1003, and then the new 1003 has 9 new questions a LO must ask.  This section is broken down into two, 5a, and 5b.  About this property and your money for this loan, and about your finances.

1003Section5a

And Section 5b ↓

1003Section5b

Section 6 is all about the legal acknowledgements and agreements with doing a home loan.  It breaks down 6 areas of legal verbiage for the client to sign off on.  AND there is two signature lines on the primary borrower’s 1003!  (Tomorrow I go over this)

1003Section6

Next up on the 1003 is the very familiar Demographic information page section 7. This is identical to what we have now on the current 1003, I see no evident changes.

1003Section7

The last section of the 1003 is section 8.  The Loan Origination information section.  And this contains all the same information as on the current 1003 just the the order of which it is portrayed has changed.  The company is now first, versus the LO information.

1003Section8

And of course on the last page of the 1003, the borrower’s name goes on the bottom left that coincides with the 1003 of that borrower.  I like the flow overall, and there are some new sections, new questions and better information gathered as a whole on this new 1003.  I think it takes a lot of the “holes” on the existing 1003 and makes it stand out as questions on the new one.  KNOW YOUR CRAFT inside and out.  This is a major change and I believe most LO’s are just now starting to take a look at this new one.

Now it’s time to get more loans!  #GetOnPoint with #BluePointMtg!

As Always –

#SellWell

 

 

 

Monday’s Motivation – NEW 1003 Week!!

#MondaysMotivation – NEW 1003 Week!! – We are less than two months away from July 2019 when the new 1003 becomes optional.  ARE YOU READY?  Have you looked at it, and do you understand the new stuff on it, or the things that stick out that changed?  Actually section 1 is completely new! And this week we will go through each section and highlight the changes, what’s new, and how it applies to your new process of taking an application.

Today I will break down section 1, and provide my synopsis and point out differences and note-able changes.  The biggest change is mulitple people are NOT on 1 application even if married.  Only 1 person is.  Every person fills out an application and then on the application there is a place to list other borrowers applying for this loan.  (however they need to fill out a separate 1003)  Again the 1003 claims only 1 social security number and date of birth for “the borrower” on it.  And lists the names and total number of borrowers for the loan.

1003Section1a

The same flow as the current 1003, just a different look and feel.  The second major area on page 1, section 1a is the current address section.  Much like the current 1003, the rule of having 2 YEARS HISTORY for EVERYTHING is pointed out.  (most commonly missed thing for 1003’s) I love the military declaration section, and it’s interesting they added the new section for the primary language preference.  Biggest notable is the radio button options for No Primary Housing Expense, and or Rent or Own.  And to the right is an area to identify how much.  Check it out ↓

1003Section1a2

Page 2 starts off with income section, and is considered section 1b.  The main thing I like is the fact there is a flow for listing the job and then the amount at that job on the same place on 1003.  Must like the current address and amount of that housing expense, this lists the job/self employment and that amount they make.  If self employed that box is at the bottom left instead of top right, and has a declaration section for ownership that is new.  Then a separate place to indicate income from self employment income.  Over the right “gross monthly” income is broken down for those employed only, such as base, OT, Bonus, Commission, or Military income and or other.  Also note-able is the “statement” box dead smack in the middle of this area.  If they are employed by some party involved in the transaction it must be identified.

1003Section1b

The next section “if applicable” is for additional income.  Meaning someone whom has two jobs for example.  This is the section for that. ↓

1003Section1c

Next up is the PREVIOUS employment section, again “if applicable” and current employment is less than 2 years.  Note-able in this section is the fact on previous employment the client must provide previous monthly gross and identify if self employed.  Known as section 1d.

1003Section1d

In the last section on page two, and rounding off section 1 of the new 1003 is section 1e.  This identifies all “other” income.  And the way it’s portrayed is a great reminder for LO’s to see as it lists all the other income types to remind you to ask.

1003Section1e

Proceeding that at the way bottom left there is a line on page 2 at the bottom that identifies which client’s 1003 work information you would be looking at.  I can see this one of those lines that drives LO’s nuts and is constantly left blank.  This is why each person has a separate 1003 now.  So even if they are married, just as section says at the top, you are identifying if that application is a “joint” or individually.  And if with other’s you list the total number and names of all other’s that would have a separate 1003 associated with the transaction.  Here’s a snip of the bottom of page 2.  Get to know it is my opinion.  🙂

1003Section1page2

As always – #GetOnPoint with your own craft and know the 1003 like the back of your hand.

#SellWell