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REAL ESTATE TID BITS

The Basics of Loan Disclosure.

Reader’s Question:
What does the lender have to tell a borrower about the lending process and the loan?

Answer:

A mortgage lender is required to make certain disclosures to a borrower on application or within three days after the application. The disclosures describe costs incurred with the loan (closing costs, origination fees, etc) the effective interest rate being charged and the possibility that the lender will transfer the payment collection on the loan. One of these disclosures includes the Good Faith Estimate. The Real Estate Settlement Act (RESPA) requires disclosures of estimated settlement costs to home-buyers based on parameters of the loan. These settlement costs include fees to be paid at closing. Fees can vary based on changes in the loan that occur between the time of application and the closing. In addition, the lender is required to provide the borrower with HUD's settlement Cost Guide booklet, which describes the home buying process.
Another disclosure is the Truth in Lending. The purpose of the federal Truth-in-Lending Law is to ensure that borrowers are aware of the terms and costs of credit so they can knowledgeably compare loan programs and lenders, finally last but not least, Transfer for Servicing. This is another disclosure the lender must provide which shows the lender's intent regarding servicing the loan after the closing, and tells what percentage of loans it has transferred servicing on in the past. Lenders also must give adjustable-rate mortgage applicants a worst-case scenario of how the monthly payment could adjust over the life of the loan.
For more information please call Emmanuel and his team at


For more information call Emmanuel Fobi and his team at 1-866-607-7377.
www.homeloans366.com
Xpress Mortgage Corp
155 Granada Street, Suite K
Camarillo, CA 93010
805-393-2901-ph *805-383-2940-fx