EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024
Loan Inquiry and Application Process
Requirements Study Guide
Information on Form 1003 - Answer✔✔-Section 1:Borrower Information: This section asks
about the borrower's personal information and their income from employment and other
sources, such as retirement, that you want considered to qualify for this loan. (birthdate, ages of
children, marital status, etc.)- Current, Additional, and Previous Employment/Self-Employment
and Income: Must provide at least 2 years of current and previous employment and income.-
Income from Other Sources: alimony, child support, disability, public assistance, unemployment,
etc.Section 2:Financial Information — Assets and Liabilities: This section asks about things the
borrower owns that are worth money and that they want considered to qualify for this loan. It
then asks about their liabilities (or debts) that they pay each month, such as credit cards,
alimony, or other expenses.- Assets - Bank Accounts, Retirement, and Other Accounts You Have:
checking, savings, retirement 401K, stocks, etc.- Other Assets and Credits You Have: Assets =
Proceeds from Real Estate Property to be sold on or before closing, Proceeds from Sale of Non-
Real Estate Asset , Secured Borrowed Funds/ Credits = Earnest Money, Employer Assistance, Lot
Equity, Relocation Funds, Rent Credit, Sweat Equity- Liabilities - Credit Cards, Other Debts, and
Leases that You Owe: Revolving (e.g., credit cards), Installment (e.g., car, student, personal
loans), not real estate- Other Liabilities and Expenses: Alimony, Child Support, Separate
Maintenance, Job Related ExpensesSection 3:Financial Information — Real Estate: This section
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, EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024
asks them to list all properties they currently own and what they owe on them.- Property You
Own: mortgage loans, rental income, Monthly Insurance,Taxes, Association Dues, etc.- Any
Additional Properties You OwnSection 4:Loan and Property Information: This section asks about
the loan's purpose and
. Handling credit report discrepancies - Answer✔✔-You are not a credit repair professional, you
can counsel the borrower as to what should be done, but you can't do it for the borrower.
Acceptable gift donors - Answer✔✔-Immediate blood relative and no evidence of any
repayment requiredSome lenders permit gifts from a non-relative such as a godparent, a close
family friend, an employer or a government agency. Before approving these funds, the bank
verifies the relationship between borrowers and their donors to ensure the donor doesn't have
any interest in the property being purchased.
. Information provided to a borrower in response to a loan inquiry - Answer✔✔-Notice Of
Adverse Action
Required disclosures that must be provided to a borrower in response to a loan inquiry -
Answer✔✔-Initial Loan Estimate, Intent to Proceed, Loan Tool Kit (Special Information Booklet),
Preferred Provider's List, AFBA, Mortgage Servicing Disclosure Statement and Homeownership
Counseling Disclosure are to be delivered within three business days from signed application
Application accuracy and required information on an application (e.g., name, Social Security
number, address of property to be financed, estimated property value, income, loan amount) -
Answer✔✔-Section 6 Acknowledgments and Agreements states in the section (1) The Complete
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