Home buyers in Washington tend to have a lot of questions about the mortgage application process. This is especially true for first-time buyers who have never been through the process before. Today, we will take a close-up look at the standard mortgage application that’s used in Washington State.
URLA: The Mortgage Application Used in Washington
In Washington, as in most states across the country, lenders typically use a standardized mortgage loan application form. It is referred to as the Uniform Residential Loan Application (URLA). It’s also known by its various form numbers: Freddie Mac form 65, or Fannie Mae form 1003. All of these titles refer to the same standard mortgage loan application.
The standard loan application has 10 sections. But don’t be overwhelmed by that. Your loan officer can guide you through the various sections as you are completing your mortgage loan application.
Here’s a quick overview of the different sections:
1. Type of mortgage loan: This section contains some basic information about the type of mortgage loan you are using to buy a home in Washington. In cases where the borrower hasn’t yet selected a property, it might also include a maximum amount that they wish to borrow.
2. Property information and purpose of the loan: This section will be filled out once you have chosen a home and made an offer to buy it. This section contains basic information about the property, such as the address, the year it was first constructed, etc. It also specifies whether you are using the mortgage loan for a purchase or a refinance.
3. Borrower information. This section of the mortgage loan application asks for some basic information about the borrower (and the co-borrower, when applicable). It includes basic identifying information such as social security number, date of birth, marital status, and contact information.
4. Employment information: This is where you will fill out information relating to your current employment situation. You will provide the name and address of your current employer, and possibly previous employers depending on how long you’ve been at your current job.
5. Income and housing expense: How much money do you earn each month, and how much will you end up paying for your housing costs once you take on a home loan? That information will go into this section of the Washington State mortgage loan application.
6. Assets and liabilities: The section requests information relating to any current assets you have, such as retirement accounts, stocks, etc. You’ll also be listing any checking and savings accounts you currently have. The “liabilities” in this context refers to your various debts.
7: Details of the real estate transaction: Part 7 will contain the purchase price you’ve agreed to pay for the home, along with estimated prepaid items and closing costs.
The mortgage loan application is one of the preliminary steps when buying a home in Washington. It usually happens on the front end of the process and paves the way for additional steps like pre-approval, house hunting, home appraisals and closing.
The mortgage application is just one of the documents that borrowers must provide when buying or refinancing a home in Washington State. There are several other documents as well, and you can learn about them here.