Posted by Ed Garcia on April 02, 1999 at 10:16:49:
Mick:
A 1003 is the name of the credit application because that is the number
at the bottom of the form. It is the standard credit application used in
the mortgage industry, because lenders sell their loans off from time to
time and it is some what uniform credit application.
Built into the application is a basic financial statement.
When doing a loan package, you fill out a credit application, it tells you
everything that you need to know about a borrower. Then you ad to this
loan package, tax returns, mortgage balance statements, copy of the
fire insurance policy, pay check stubs, and the list goes on depending
on the individual information stated on that application.
This is what we call supporting documentation , because it more or less
verifies the information as stated on the application.
When you hear a no doc loan or stated income loan. That mean the
lender will not require you to provide tax returns or bank statement,
and will accept the income as stated on the application.
You are not required to verify it.
I hope this helps you understand the terminology a little better .
Ed Garcia