Form 1003 - Uniform Residential Loan Application (a breakdown)

There are several things to consider when applying for a mortgage or home equity line of credit. Below I have listed several main sections that are on the Fannie Mae Form 1003. By knowing what documents to bring to your broker, your loan process will be simplified and the process will be smoother.
A home equity loan is like any other mortgage loan in that the application process is usually the same.

Verification of documentation is dependent on the type of loan (stated, no-doc, no-income, or full-doc, and conventional) whether you need to verify your work history your rental payment history or if you need to varify your assets and income. These verifications come int the form of a VOE-verification of employment, VOR-verification of rent, and VOI-verification of income.

1. Type of Mortgage and Terms of Loan
   
   Your broker will fill this section out depending on what your needs are.
   
   For example they might write some of the details concerning a home equity line of credit here..
   


2. Property Information and Purpose of Loan
   
   Your broker will fill this section out. If you will be doing new construction or refinancing into a mortgage or HELOC,
   you will have additional information about your house to fill out here. Your broker
   will go into more depth in the interviewing process.
   
   
3. Borrower Information
   
   This section is going to cover your name, your social security
   number, phone number, date of birth, the number of years of school that you have
   completed, and your address (present and mailing)
   
   You will need to provide two years of address information and if you rent then be sure to provide contact
   information for your landlord.
   
   
4. Employment Information
   
   You will need to provide at least 2 years of work history. Include for each employer
   the length of time that you have been work there and how long you have been working
   in that line of work. Include contact information to reach your employer, and
   the title for your position.
   
   Compensation for your current job will be
   covered in the section following this one, but include your monthly income for
   all of the other jobs.
   
   
5. Monthly Income and Combined Housing Expense Information
   
   Write down your monthly income. be honest becuase
   you will need to bring varification. Varification includes 2 years of tax form
   w-2as well any award letters or other documentation that you think may be requested.
   The more material you provide to your broker will, in the end, mean less phone
   calls and less time wasted later on.
   
   Also write down what you are paying
   each month in rent. or if you currently own a home then write down all the information
   that you know about your current mortgage or home equity loan.
   


6. Assets and Liabilities
   
   Your broker will want to know about your assests. so
   list out everything you have. You will need to list your bank accounts, their
   account numbers and how much money is in each account. If you have investments,
   list them. If you have a money built up in a retirement fund, list it. List the
   year, make and model for all cars that you own, and if you have anything particularly
   valuable list it. for everything else, estimate what your howehold goods are worth.
   
   This gives the bank a better understanding of what your situation is. The Broker involved
   uses the Assets section less than other sections, but don't skimp. every detail
   that your broker loans will help ensure that your loan gets approved the first time.
   
   Liabilities will be collected by pulling a credit report for you
   and your coborrower if you have one. If you can explain derogatory credit and
   are getting a governmental loan, it may be useful to explain negative credit.
   
   If you own property you will need to list it in the section.
   


7. Details of Transaction
   
   This section is for your broker to fill out
   


8. Declarations
   
   There are several yes no questions here. Be honest. they will help avoid problems later on in the loan origination process.
   


9. Ackowledgment and Agreement
   
   When you go in to sign disclosures you will need to sign here to acknowledge that the
   information you have provided is correct to the best of your knowledge
   


10. Information for Government Monitoring Purposes
    
    Are you Hispanic or Latino?
    
    What is your race..? White, Asian, Black or African American, American Indian or Alaska
    Native, or Native Hawaiian or Other Pacific Islander.
    
    The government monitors your broker to ensure that they are treating their clients equally.

Consolidate your credit card debt

With the popularity of plastic money in the present age, credit cards are gaining immense importance. With the growing increase in usage of such cards the credit rates are also reaching the horizon. Debts are thus becoming a common happening in our daily lives. People who are under the claws of credit card debts need to give a serious thought to debt consolidation and lighten their burden. In the US more than half of the population has an average of $8000 debts, only because of the usage of credit cards.

You must be eager to know:

• How does debt consolidation helps in case of credit card debts?
• How consolidating my credit card debts could be beneficial?

A credit card debt consolidation loan can be a resource to consolidate the outstanding balances on your cards into one single loan. They can also be transferred to one single card that has a lower interest rate than the ones you are currently paying. The path to savings should be very cautiously chalked out and one needs to make calculated moves all the time. When you are paying high interest rates on some of your current credit cards then it might be a wise idea to go for a balance transfer onto another credit card or cards that have relatively low interest rate. Know more about balance transfer in the "members only" contents. We offer free membership. Calculate the interest on your credit card debts and transfer it accordingly.

The ideal way to consolidate your credit card debts!

In order to make you understand better we have a small example of how consolidating your credit card debt could be beneficial.

Let's say you have $100 in outstanding credit card debt and the average annual percentage rate (APR) on that card or cards is 18 % ( which is the average). If the outstanding balance remains at $100 then over the course of a year you would pay approximately $18 in interest charges alone. If you consolidate your credit card debt into a single loan with a lower interest rate or if you do a balance transfer onto a credit card or cards with a low interest rate you would save a significant amount of money.

If the new loan or credit card have a 9% APR then you would save roughly $10 in interest charges over the course of that same year. If you save $10 for a debt of $100, then think about a debt of $10,000. This trick will save you $1,000 over the course of that same year. Just think of $1, 00,000 debts; you can save $10,000. And this amount of $10,000 can be used to repay some of your debts. Life becomes easy with simple calculations and cautious moves.

If you are under a mountain of debts our experts will help you to consolidate your debts and help you tread you into a debt free land. Consolidating your debt is perhaps the fastest, safest and best way today to get rid of your financial obligations and we are experts in this field. Fill our free membership form to view all the alternatives. With debt consolidation we are here to consolidate all your financial loans in a single monthly payment. Thus we help you take the first step nearer to freedom. You can take a look at the following articles:

http://www.debtconsolidationcare.com/card-counseling.html
http://www.debtconsolidationcare.com/creditcard-terminology.html
http://www.debtconsolidationcare.com/creditcardfaq.html
http://www.debtconsolidationcare.com/credit-counseling.html

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About The Author -

Author's Name : Janet Williams

bill@debtconsolidationcare.com

Janet Williams is a contributing writer to www.debtconsolidationcare.com and is currently working on a special section in the site called do it yourself where you can eliminate your debts and become debt free.

(July 2005)

Disclosures from lenders

The federal Truth in Lending Act requires lenders to disclose the important terms and costs of their home equity plans, including the APR, miscellaneous charges, the payment terms, and information about any variable-rate feature. And in general, neither the lender nor anyone else may charge a fee until after you have received this information. You usually get these disclosures when you receive an application form, and you will get additional disclosures before the plan is opened. If any term (other than a variable-rate feature) changes before the plan is opened, the lender must return all fees if you decide not to enter into the plan because of the change.

When you open a home equity line, the transaction puts your home at risk. If the home involved is your principal dwelling, the Truth in Lending Act gives you 3 days from the day the account was opened to cancel the credit line. This right allows you to change your mind for any reason. You simply inform the lender in writing within the 3-day period. The lender must then cancel its security interest in your home and return all fees--including any application and appraisal fees--paid to open the account.

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This article is from the Federal Reserve website

(Febuary 2005)

Are There Good Mortgages for Mobile Homes and Manufactured Housing?

Are There Good Mortgages for Mobile Homes and Manufactured Housing?

Why do so many mobile home and manufactured housing buyers settle for what ever mortgage the dealer throws in front of them? Do they really think they deserve to pay 9-12% interest just because they are not buying traditional housing? There is no reason to pay those rates just because you are financing under $100,000.00. Fannie Mae, HUD, and FHA all have programs with rates between 7.125 and 8.5% interest on mortgages below 60,000.00 and 6.125-7.5% on Mortgages below 100,000.00.

They do have common sense conditions as to the construction, anchoring and foundation. Many of these conditions are based on location and safety but again they are common sense and can be rolled into the mortgage as a construction to permanent loan (also known as a C/P). By going with one of these programs you automatically qualify for reduced insurance premiums because your house will conform to Fannie Mae, HUD, or FHA standards. You also have the piece of mind of knowing your home is as safe and weather resistant as possible.

Compare the above rates to what you pay now. And realize that there is no good reason to pay more. If you have a credit rating of over 485 you can qualify for one of the rates above. There are other factors like Loan to Value, Debt to Income Ratio, Primary Residence, that can affect the rate. However there is no reason to pay higher then the highest rate mentioned above.

Let me know if you found this article useful.

Kevin Hidden

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This article is from Kevin Hidden at www.mortgageseeker.biz.

Kevin can be reached at support@mortgageseeker.biz

(April 2005)

Why is a Home Equity Line of Credit good for you?

There are several reasons to a choose a home equity line of credit (also known as a
HELOC) for home financing. There is such a wide variety of reasons that I will
limit my discussion about HELOCs here to just a few.

Investor:

A Home Equity Line of Credit is the perfect tool to reduce risk within an investment
property. If an emergency repair needs to be made, the cash to pay for such a
repair can be made directly through the Heloc. A Heloc may also allow the funds
for future investments or improvements to the property.

Parents:

Helocs are useful becuase they can allow you to pay for medical bills. For example,
a home equity line of credit may assist the preparation for a newborn or for an
older child, it could make braces more affordable. Consolidating debt is also
another benefit listed below. The benefits are endless. Consider financing your
car through a heloc. car loans tend to be outragious.

Home Improvements:

New landscaping, carpets, and paint are the three fastest and low cost ways to
improve the value of your home. Adding more square footage is the number one way
to increase your homes value and what better way to do that than through a home
equity line of credit. Helocs are better than an improvement loan becuase you
are not required to have inspections throughout the improvement process.

College:

Fund your childs college experience with a home equity line of credit. You
will find that a heloc may make the difference in putting your child through college.
College graduates on average make several time that of individuals with only a
highschool diploma.

Medical:

Use a home equity loan to cut the cost of your insurance by having a larger deductible. Becuase of the Heloc, you will
be able to make the deductible if you have a serious medical emergancy. Becuase
you will be paying dramatically less each month on insurance, your savings will be huge!

Retirement:

A heloc is one way to tap the equity that has
been built up in a home. Another loan to use is a reverse mortgage.

Debt Consolidation:

This is probably the number one reason to get a home equity
line of credit. why have hold several different loans that have large interest
rates when you can consolidate them into one loan with a lower rate. Not only
will this reduce your overall interest rate, but becuase a heloc is ammortized
over a large period of time, you will be dramatically decreasing your monthly
payment and improving your cashflow!

Costs of establishing and maintaining a home equity line

Many of the costs of setting up a home equity line of credit are similar to those you pay when you buy a home. For example,

• A fee for a property appraisal to estimate the value of your home
• An application fee, which may not be refunded if you are turned down for credit
• Up-front charges, such as one or more points (one point equals 1 percent of the credit limit)
• Closing costs, including fees for attorneys, title search, and mortgage preparation and filing; property and title insurance; and taxes.

In addition, you may be subject to certain fees during the plan period, such as annual membership or maintenance fees and a transaction fee every time you draw on the credit line.

You could find yourself paying hundreds of dollars to establish the plan. If you were to draw only a small amount against your credit line, those initial charges would substantially increase the cost of the funds borrowed. On the other hand, because the lender's risk is lower than for other forms of credit, as your home serves as collateral, annual percentage rates for home equity lines are generally lower than rates for other types of credit. The interest you save could offset the costs of establishing and maintaining the line. Moreover, some lenders waive some or all of the closing costs.

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This article is from one of
The Federal Reserve Board's webpages

(Febuary 2005)

Home-Equity Loans - A description from the Consumer Action Website

Consider carefully before taking out a home equity loan. Although this type of loan might let you take tax deductions that you could not take with other types of loans, they reduce the equity you have built up in your house. If you are unable to make payments, you could lose your home.

Home equity loans can either be a revolving line of credit or a one-time, closed-end loan. Revolving credit lets you choose when and how often to borrow against the equity in your home. In a closed-end loan, you receive a lump sum for a particular purpose, such as remodeling or tuition. Apply for a home equity loan through a bank or credit union first. These loans are likely to cost less than those offered by finance companies.

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This article is from one of the Federal Citizens Information Center's webpages

(Febuary 2005)