I wanted to take a minute to discuss mortgage loan disclosure documents. This content was created to help my clients understand their mortgage, and keep them informed throughout the process of purchasing a home. I hope that you find this video helpful, and I encourage you to share this content with your clients!
What are loan disclosures? Once you're under contract, the loan officer is going to take the purchase contract and your income and asset documentation, and will generate what's called mortgage loan disclosures. They can be between 64 and 100 pages long depending on your loan program, and will ensure that you have no questions moving forward about you understand your interest rate, payment, and what the fees are gong to be.
It protects from those horror stories you hear about getting to the closing table and finding out you have an adjustable rate when you thought you had a fixed rate or a surprise pre-payment penalty.
These documents have to go out to you within three days of application, which is set forth with us with the Consumer Financial Protection Bureau. That way, the lender can't hold these documents and force you to close quickly under pressure because they didn't get them out in a timely manner.
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Loan disclosures make sure you understand every facet of the whole loan.
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Can disclosure documents differ from your closing documents? In October of last year, the Consumer Financial Protection Bureau came out with more safeguards to protect consumers from their closing documents changing or their fees changing. We now have what's called the closing disclosure, which must go out at least three business days prior to closing. These will be your final numbers.
After you’ve acknowledged the closing disclosure, if anything in those three days changes the annual percentage rate by more than 1/8th or the zero-tolerance fees, ultimately, the lender would have to re-disclose your closing disclosure and wait another three days to close your loan. This way, you'll have ample time to review everything before going to the closing table and signing away on a 30-year loan.
This can be a complicated topic, but I would love to answer any questions you may have about loan disclosures. Give me a call or send me an email today. Let's talk soon.
After you’ve acknowledged the closing disclosure, if anything in those three days changes the annual percentage rate by more than 1/8th or the zero-tolerance fees, ultimately, the lender would have to re-disclose your closing disclosure and wait another three days to close your loan. This way, you'll have ample time to review everything before going to the closing table and signing away on a 30-year loan.
This can be a complicated topic, but I would love to answer any questions you may have about loan disclosures. Give me a call or send me an email today. Let's talk soon.
