Complete 1003

Written By: Theresa Furzland

The completion of the loan application form can make the loan process smooth or a nightmare. A complete application with the proper supporting documentation versus an inaccurate application can make all the difference in the world. We all know this, it is mortgage 101, however to this date it is one of the biggest concerns/problems in the system. The problem I think is that often times the completion of the loan application is looked at as a “starting be completed later”. This approach to the application process is wrong. The initial application must include complete and accurate verification and clarification of all items concerned. The whole process must also include educating that customer on what they need to understand to make an educated decision. Although not intentional, the loan originator often approaches the loan application as a quick process to get through and “move the file to processing”. This move should not happen until the originator has completed all steps to provide a complete application.

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So what is a complete application, you say? When the 1003 is completed and the borrower has signed it then it’s done. Paystubs, W2s and Bank statements to back up the information and we’re good to go. This is true as a basic reality, just filling in the blanks is not the whole picture. Anyone who has completed an interview with a potential client knows that any particular answer to questions on the application can lead to additional questions, concerns or requirements. The completion of the application is really a guideline to the covering all aspects of the proposed financing to the client.

When the customer signs that 1003 these questions must be answered:

1.Do they know where to find their estimated payment and understand the breakdown?
2.Have they reviewed the details of transaction with the LO and understand the breakdown and estimate of the closing costs and the bottom line? This as we know includes the discussion of a few other disclosures!!
3.Has the originator reviewed the declarations with them and explained the meaning of each as well as the HMDA information?
4.Has the credit report been compared against the information, explained to the customer? Any discrepancies documented?

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The bottom line is, the application process cannot be looked at as a 15 minute, or 1 hour or even one day process. The process is not over until these criteria have been met (in my humble opinion)
When the file goes to processing, if this process has been handled efficiently by the loan officer, then the 1003 application in the file will match the supporting documentation sent to the processor, the customer will be educated in the process and been presented with realistic expectations and choices and the final application that is signed at closing should also match the initial application.

About The Author

Theresa Furzland - As an NAMP® staff writer, Theresa Furzland serves as an instructor for Loan Processor University ( Theresa has 25+ years of experience ranging from origination, processing, closing and post closing. She is currently a producing Branch Manager for LendSmart Mortgage, LLC and own and operate Willow Wood Mortgage Services, Inc. If you're interested in becoming a writer for NAMP®, please email us at:

Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.