During the application process we ask a borrower to sign a list of disclosures (acknowledgements) regarding many issues. Here is the list and a brief summary of each. Of course each disclosure should be read in full and you should be clear on what each item means before signing.
Borrowers Certification: that the information you supply about yourself is true
Borrowers Authorization: for Best Deal and any lender to be able to access your information
Credit Authorization and Consent: that Best Deal can get your credit report
Fees for Best Deal: that you understand that Best Deal charges $650 for application, credit report, and processing
Fair Credit Reporting and Equal Credit Opportunity Act: that you understand that Best Deal is going to look at your credit report
Right to Financial Privacy Act of 1978: we don't share your credit details with anyone
Equal Credit Opportunity Act: that Best Deal will not treat you unfairly
Application Disclosure: We will not lend you any money at your closing
Legal Interest Representation: You have the right to choose any attorney you wish
Right to Receive Copy of Appraisal Report: you will be given a copy of the appraisal
Impound Agreement: that taxes and insurance will be included in your monthly payments (this may be mandatory for some loans and for others where it is an option it may cost more in the interest rate)
Connecticut Private Mortgage Insurance Application Disclosure: that you understand that if you have more than 80% of the value of the property in the loan that you will be required to pay mortgage insurance
Statement of Loan Purpose: simply stated purpose of loan
4506-T Request for Transcript of Tax Return: permission for lender to verify your income on W2's
Mortgage Loan Origination Agreement: explanation of how mortgage brokerage gets paid. That we get paid by the borrower through a percentage of the points and/or through the lenders who give a percentage
CIP Patriot Act Disclosure Form: Verifies that you are stating who you say you are
FHA disclosures
If you are applying for an FHA loan, these disclosures will need to be signed too:
Residential Loan Application: similar to the general loan application you already filled out before but this also allows the FHA to verify your social security number
Direct Endorsement Approval for a HUD/FHA Insured Mortgage: information about the mortgage broker and confirming that you do not have any conflicting relationship with the broker
Borrower's Certificate: certifying that the information you provided is accurate and you are not breaking any rules
Lender's Certificate: certifying that the information you provided is true
Amendatory Clause/ Real Estate Certification: certifies that if you are purchasing a property and the appraisal does not come back at the sales price that you can back out of the loan.
Important Notice to Homebuyers: notifying you that there is no prepayment penalty; that you may qualify for a pro-rated Up Front Mortgage Insurance refund; if someone assumes your loan they have to qualify for it first and you are ultimately responsible for it.
Informed Consumer Choice Disclosure Notice: comparison chart of FHA vs. Conventional loan costs. Big difference is in cost of Mortgage Insurance
HUD Appraised Value Disclosure: that you have the right to back out of the loan if the appraisal doesn't confirm the selling price
Gift Letter: if you are receiving a gift for the down payment you need to confirm that it is from a family member
Borrowers Contract with Respect to Hotel and Transient Use of Property: that you will not operate your house as a hotel
Affidavit of Occupancy: verifies that you are the primary occupant of the house
Anti-Coercion Statement: that you are free to choose any attorney to represent you
Fair Credit Reporting Act: Notifies that you can dispute the credit report
FHA Loans Only: that the interest is charged at the beginning of the month
Government Loans Only: That no one with access to your credit information will share it with anyone else
FHA Identity of Interest Certification: that you are not in business with the seller or lender
