For most first time Home Buyers, the beginning process of the home loan can be quite confusing. Over the past 5 years, the homebuyer could never be more confused with the initial paperwork process that is called the initial disclosures. In this video, blog, I do my best to explain how and why your Loan Officer and Home Mortgage lender has to send out multiple loan disclosures during the processing of your loan.
Whether your loan is for a Refinance or a Home Purchase, your lender has to reach out to you with disclosures once a property has been identified and a loan application has been completed. There are three different stages of disclosures to look out for:
The First Stage is the initial set of disclosures. This set will have general numbers and estimates for your review. In most cases, at this stage of your home loan, your Loan rate and terms have not been
locked yet, so it is important not to panic when you receive the initial set. What is important to do is to acknowledge or do whatever is asked by your lender to respond to this initial set. There are also a few documents in this initial set that does require a “real” Signature. These forms may include, but not restricted to the following:
Initial Loan Application (1003)
4506-T IRS Form
Consent to Continue Processing
The Second Stage of disclosures will arrive around the same time your Loan Rate and Terms are locked in with your lender. They can also be sent when your lender has determined more accurate numbers before your loan
is submitted for final underwriter review and loan approval.
A third stage of disclosures is also known as the final loan documents. These set of forms are the final numbers and require your review and signature in order to close your loan. Make sure your rate, term of the loan and final figures on your closing fees are what you have agreed to with your lender.
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