For the prior segment of this video covering the borrower’s and transaction agent’s entry of the borrower’s assets and liabilities on the Uniform Residential Loan Application (URLA), click here.
Information about the purpose of the mortgage and the property to be purchased or refinanced
Editor’s note – This video addresses the redesigned Uniform Residential Loan Application (URLA) which was scheduled to become mandatory February 2020. Implementation of the redesigned URLA has been pushed back to March 2021 in response to the COVID-19 pandemic.
The URLA presently in use and the redesigned URLA are based on the same fundamentals, though feature different sequencing and some distinctions in content.
After information concerning the borrower’s assets and liabilities are entered into the Uniform Residential Loan Application (URLA), the next component of the loan application is titled Section 4: Loan and Property Information.
Here, the borrower enters information about the purpose of the loan, and the property they intend to purchase or refinance with the funds.
In Section 4: Loan and Property Information, the borrower indicates:
- the total dollar amount of the mortgage requested;
- the purpose of the loan, whether it’s a purchase, refinance or something else;
- the property’s address;
- the property’s value; and
- the intended occupancy of the home, be it a primary residence, second home, investment property, or FHA secondary residence.
If applicable, in this section the borrower will also enter other information concerning:
- other new mortgage loans the buyer will obtain for the purchase or refinance of the property;
- expected monthly rental income the property is expected to generate, if the property or part of it is to be rented out for investment purposes; and
- gifts or grants the borrower has been given or will receive that will be applied to the loan.
Continue watching next week for our discussion of the final components of the URLA.