For the prior segment of this video covering the use of the Mortgage Shopping Worksheet to compare all the mortgage variables occurring on origination and during the life of the mortgage, click here.
Authorization to start the mortgage packaging process
The Uniform Residential Loan Application prepared by the buyer with the assistance of their transaction agent (TA) provides the lender with necessary information about the buyer and the property which will secure the mortgage. It also gives the lender authorization to start the mortgage packaging process. [See RPI Form 202 (FNMA 1003)]
Generally, a mortgage is sought in a home sales transaction which is contingent on the buyer obtaining a mortgage to fund the purchase of the property, known as purchase-assist financing. However, a mortgage may also be needed for funding by:
- an owner of vacant land to construct a dwelling;
- a property owner to improve or renovate a property they currently own;
- a property owner to refinance an existing mortgage; or
- a tenant on a long-term lease who has agreed to make tenant improvements (TIs) to the property they rent.
As implied by its title, the Uniform Residential Loan Application is intended primarily for use on mortgages secured by residential properties.
However, as a generic mortgage application, it is used by mortgage brokers as an application for a mortgage funding any purpose and secured by any type of property. The Uniform Residential Loan Application contains all the information required for arranging all types of real estate mortgages. In practice, the type of property intended to be purchased by use of the mortgage funds is provided by the description of the property in the mortgage application. [See RPI Form 202 (FNMA 1003)]
