Mortgage Loan Disclosure Statements
After you complete the loan application and choose a
loan type, we provide several documents to you that
disclose important aspects of the loan. The documents
are:
Estimated Closing Cost
Statement:
We provide an estimate of the
closing costs incidental to obtaining a loan. Some of
these costs are:
- Loan origination
fees: the cost to obtain the loan
paid.
- Loan discount/
premium fees: paid to or received
from the secondary market investor depending upon
the interest rate.
- Processing,
underwriting, and document fees:
some lenders charge for their services associated
with making the loan.
- Appraisal and
credit report fees: These fees
are collected by us and paid to outside companies
performing the services.
- Title, escrow, and
closing agent fees: These
companies charge various fees for their services.
- Private Mortgage
Insurance: Generally, the first
year premium is paid in advance.
- Property and Hazard
Insurance: All or a portion of
these may be required to be paid.
- Prepaid Interest: Depending
upon the time of the month the loan closes,
interest may be prepaid.
- Incidental
recording, delivery, wire, etc. fees:
These fees are all normal fees charged to the
consumer.
Truth in Lending
Statement - Regulation Z:
This statement
shows annual percentage rate (APR) on the loan. This rate
combines the actual interest paid on the note rate over
the life of the loan plus the total costs to obtain the
loan. The APR is a measure of the cost of credit
expressed as a yearly rate of interest. Because all
lenders follow the same rules in calculating the APR, it
provides consumers with a good basis for comparing the
cost of mortgages.
Settlement Cost, A HUD
Guide:
This booklet gives an overview of
the lending process and is required by HUD. The booklet
is provided to consumers after the loan application is
completed.
Consumer handbook on
ARMs:
This booklet gives an overview of
ARMs.
For more information about home
lending, call our Real Estate office today at (407) 647-8252.
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