When you apply for a mortgage, you will also need to sign many disclosures. These disclosures are there to provide you with vital information about the loan you are applying for. It is in your best interest to read and understand what is in each of these disclosures. If you do not understand, ask your mortgage professional. It is their job to help you through this process.While there are many generic disclosures that are required, some states have additional specific required disclosures. You can check with your state banking commission to find out what your state specific disclosures are.
One of the disclosures that you will be required to sign is the Release of Information. This will allow your mortgage professional to obtain all the necessary paperwork to close your loan. Some things that they will use this for is your verification of employment (VOE), verification of rent (VOR), payoff, and anything else that the new lender may require.
The servicing disclosure informs the borrower of their rights when the servicing of the loan have been sold to another investor.
The important 'Number' disclosures you want to pay special attention to, are the Good Faith Estimate, the Truth in Lending disclosure, and the application itself.
One of the disclosure forms that you will be required to sign will be the right to receive a copy of your appraisal report. This form states that you have a right to receive a copy of your appraisal report, and all that you need to do if you would like a copy is write to your mortgage professional within 90 days of closing and they must supply you with a copy.
Although these disclosures may seem tedious, it is important to read them, sign them and return them to your loan officer quickly. Delays could hold up your loan.
With the ever increasing threat of identity theft, it is important to remember, disclosures actually work as a protection for you.
As part of the mortgage application, a Equal Credit Opportunity Act disclosure to be signed. This disclosure informs loan applicants that they have the right to fair credit opportunities, and that discrimination on the basis of race, sex, religion, country of origin, age, etc. is prohibited.
Some states may require a "Attorney Preference Letter" in which the borrowers state which Title Attorney they have chosen.
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