What Does A Mortgage Application Include?

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What is a mortgage application?

A mortgage application is a request to borrow money to buy a home or refinance an existing mortgage, typically completed by the prospective borrower or the mortgage loan officer. The form covers all aspects of the borrower’s finances, as well as information about the property attached to the loan. This includes:

• Borrower’s employment history
• Borrower’s income sources
• Borrower’s debts
• Details about the property
• Loan purpose

Most mortgage lenders use the Uniform Residential Loan Application (URLA), or some variation, to collect this information. There are two main URLAs: Fannie Mae’s Form 1003 and Freddie Mac’s Form 65. They’re very similar, but you’re more likely to encounter the 1003.

What is included in a mortgage application?

The Form 1003 mortgage application includes the following sections:

• Section 1: Borrower Information
  

  This section covers your personal, employment and income information — as well as this information for any other borrowers on the mortgage — and includes:

  • Name(s)

  • Contact information

  • Date(s) of birth

  • Social Security number(s)

  • Employer(s) contact information

  • Employment income, including base pay, overtime, bonuses and commissions

  • Other income, such as child or spousal support, disability, pension or Social Security payments

• Section 2: Financial Information – Assets and Liabilities
  

  This section covers your accounts (assets) and debts, including:

  • Checking and savings accounts
  • Certificates of deposit
  • Investment and retirement accounts
  • Trusts
  • Credit card debt
  • Installment payments, like car or student loans

  This section also applies to any other borrowers on the mortgage.

• Section 3: Financial Information – Real Estate
  

  This section covers any other real estate you or other borrowers own, including the value of those properties and whether you live in or have loans on them. If you’re refinancing to a new mortgage, this section begins with the home associated with the refinance.

• Section 4: Loan and Property Information
  

  This section covers the mortgage you’re applying for and the property the loan will be tied to. It includes:

  • Amount you’re borrowing
  • Occupancy status, such as a primary residence or second home
  • Property value
  • Whether the application is for a home purchase or refinance
  • Whether you’re adding additional loans — such as a second mortgage — and for what amount
  • Any financial gifts put toward the mortgage, such as a down payment gift

• Section 5: Declarations
  

  In this section, you’ll sign off on a series of yes or no questions, including:

  • Do you have a family relationship or business affiliation with the seller of the property?
  • Are there any outstanding judgments against you?
  • Have you had a property foreclosed upon in the last seven years?

  Depending on your answers, you might be asked to include an explanation letter with your application.

• Section 6: Acknowledgments and Agreements
  

  This section is legally binding. In it, you’ll verify with your signature that the information provided in the application is true and accurate, and you’ll acknowledge that the lender might verify the information provided. You’ll also allow the lender to report information about this mortgage to the credit bureaus.

• Section 7: Military Service
  

  This section applies only if you or other borrowers currently serve or have served in the U.S. military, or if you have a deceased spouse who served. It covers your status — active-duty or veteran — and other basic service information.

• Section 8: Demographic Information
  

  This section collects demographic information about you and other borrowers. If you choose to participate, you’ll be asked to identify your ethnicity, race and sex so that the government can verify the lender’s compliance with fair housing laws.

• Section 9: Loan Originator Information
  

  This section covers information related to the mortgage lender and loan officer involved in the application, including licensing and signatures.

Documents needed to apply for a mortgage

When you first contact a mortgage lender, you’ll learn if you’re eligible for a loan through a process called preapproval. At this step, you’ll provide the loan officer with documentation about your credit and finances, such as bank account statements and W-2s.

Typically, you’ll use this same paperwork to complete the mortgage application once you’ve entered a purchase agreement for a home. If you apply with a lender that has already preapproved you, the official application may be fairly quick. This paperwork includes:

• Pay stubs from at least the last 30 days
• Tax returns, including W-2s, from the past two years
• Proof of other income sources
• Bank account statements from at least the last 60 days
• Investment and retirement account statements from at least the last 60 days
• Down payment gift letter, if applicable, and proof of receipt of gift money
• Business records and tax returns if self-employed

This list also includes the signed home purchase agreement, if applicable.

Mortgage application tips

Preparation is key when applying for a mortgage. In addition to having all of your paperwork in order, there are a few things you can do to help ensure a successful application:

• Compare offers. Before applying for a mortgage, compare offers from at least three different lenders. Consider the interest rates as well as fees.
• Document the source(s) of the down payment. If a non-borrower is gifting you funds for a down payment, you’ll need a gift letter stating where the funds originated, when they were transferred to you and that the giver doesn’t expect repayment.
• Keep your job. If you can help it, avoid quitting your job while your application is in underwriting, as a lender can deny your loan if your employment situation changes. If you lose your job or start a new job, that won’t necessarily equal a denial, but you’ll likely need to provide a letter of explanation.
• Refrain from making large purchases or taking on more credit. While your application is in underwriting, avoid any big changes to your credit or financial situation, such as applying for a new credit card or depleting your savings for a big-ticket item. If the change to your finances is big enough, a lender could require you to start a new application or deny the loan.
• Consider your current debt load. While it’s always better to have a lower debt-to-income (DTI) ratio, you don’t have to pay off all of your debt before applying for a mortgage. “Speak with a lender before deciding to pay off or reduce debts,” says Rose Krieger, a Washington-based senior home loan specialist for Churchill Mortgage. “They can provide insight into which option would be more beneficial for you, potentially resulting in a higher preapproval amount.”
• Ask about rate locks. Locking in your rate might help you secure a lower rate, but make sure you understand the lender’s rate-lock policy and if any extension fees apply.

FAQ

• How long does the mortgage application process typically take?
  

  The mortgage application process typically takes anywhere from 30 to 60 days. As of September 2025, it took an average of 42 days to close a conventional home purchase loan or refinance, according to ICE Mortgage Technology.

• What happens after my mortgage is approved?
  

  After your application has been approved, your lender will set a date for closing. At least three business days before closing, your lender will give you a closing disclosure, which outlines the total costs you’ll need to pay at closing.

• Can I apply for a mortgage if I have a low credit score?
  

  You can apply for a mortgage with a low credit score. Conventional loans allow for credit scores as low as 620, for example, and FHA loans allow scores as low as 500 or 580, depending on your down payment amount.