How to Take a Complete Mortgage Application
The 1003 is the organized record of the borrower interview. A professional LO does not type until the screen is full; the LO asks, verifies, reconciles and understands why each field matters.
Chronological Application Flow
Purpose & Property
Purchase/refi, occupancy, property type, price/value, contract status, seller credit and timeline.
Borrower & Residence
Identity/contact plus current and prior addresses until a complete two-year residence history is covered.
Employment
Current and prior employment until a complete two-year history is accounted for. Explain gaps and job changes.
Income
Base, hourly, OT, bonus, commission, self-employment, pension/SS, rental and other eligible sources.
Assets & Liabilities
Funds to close/reserves and all debts, including obligations not yet on the credit report.
REO & Declarations
Each property separately, mortgage/PITIA/rent/disposition, then declarations and final QC.
Why Two Years of Residence?
Residence history helps establish identity, housing history and where prior housing obligations may exist. If the borrower has lived at the current address for only 9 months, the application is not complete because the LO typed a prior address field—the dates must actually cover the remaining history.
Why Two Years of Employment?
The goal is to understand continuity and the nature of the income, not to require two years with one employer. A borrower can change jobs and still have acceptable income. The LO must know the current start date, prior employment, pay method, gaps, and whether variable/self-employed income needs a longer history or different documentation.
Final 1003 QC Before AUS
- Residence and employment histories are complete and dates make sense.
- Income on the application is supportable by the actual income type and documents.
- Assets are owned/accessible/eligible and sufficient for cash-to-close plus required reserves.
- Credit liabilities match the report plus borrower-disclosed obligations.
- All REO is listed and mortgage/rent/PITIA treatment is reconciled.
- Purchase price, loan amount, occupancy and seller credit match the contract/structure.
- Only then run AUS and read the findings.