Document Disclosure Requirements for Mortgage Loan Lenders

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Mortgage Loan Lenders are required by law to give you information that explains yours rights and what to expect from the loan. Often times these are long documents that will take a long time reading, so here we provide you a summary of the these document requirments.

RATE LOCK-IN AND PROCESSING DISCLOSURES The interest rate quoted to you when you apply for your loan may be different by the time you go closing. Between the time of your application and the closing, you may want to lock in a rate you feel comfortable with. The Rate Lock-In Disclosure explains how much it cost for you to lock in the current rate for various lengths of time. Compare this to the lender’s Loan Processing Disclosure, which estimates how long your loan will take to process. Be sure your lock-in rate won’t expire before you go to closing.

NON-DISCRIMINATION NOTICE
Lenders are required to have you sign a statement that explains the law against discriminating on the basic of race, nationality, religion, or sex.

HUD SETTLEMENT BROCHURE
This is an informational piece describing the services provided by your lender and the amount you will pay for them at closing. In most states, closing agents typically provide an estimate of closing costs a few days prior to closing. In states with escrow closings, where you don’t go to an actual closing, you will receive the final statement after you close.

COMPLAINTS
Applying for a home loan and the closing which follows is highly regulated transaction. Congress passed the Real Estate Settlement Procedures Act (RESPA) as a consumer be better shoppers in the home buying process.

TRANSFER OF LOAN SERVICING DISCLOSURE
Lenders often transfer the servicing of their loans to another company. The servicing disclosure from stipulates that you will be notified by both the lender and the new company usually within fifteen days of the transfer. You must be provided with tool-free numbers for both companies.

THE APPRAISAL
An appraisable is an estimate of the value of your home that the lenders use to determine whether the value is high enough to justify the loan. In many states you can request, in writing, to see a copy of the appraisal.

GOOD FAITH ESTIMATE CLOSING COSTS
Also know as settlement costs, the good faith estimate of closing costs is not a guarantee because costs are subject to market changes. Because you must receive this estimate from your lender within tree business days after you’ve applied for a loan, some lenders include the estimate in their application kits.