You usually receive several disclosure forms when applying for a mortgage. It can be a bit confusing. Each of these was required by different laws over time. You will notice that some forms have overlapping details, which can make the information even more difficult to look through. The new lender disclosure documents beginning Aug. 2015 will address the disclosures given to borrowers.
The Loan Estimate Disclosure
Figures from the Truth-in-Lending (TIL) and Good Faith Estimate (GFE) will be combined into a new loan estimate form. This disclosure will give specifics on the terms of their mortgage, closing costs, projected monthly payments, and any risks that apply. This can be helpful when evaluating various mortgage alternatives either from one mortgage company or from different companies. Lenders will provide this disclosure within 3 business days of your mortgage application.
The New Closing Disclosure Form
The closing disclosure document includes the particular costs charged with the mortgage. It will combine numbers typically included in the Truth-in-Lending disclosure and HUD-1. There are typically various costs. To simplify it, fees are arranged into distinct categories such as loan costs, recording fees, and escrow payments. This disclosure is given further along in the process,… no later than 3 work days prior to settlement.
New Lender Disclosure Documents Beginning Aug. 2015
The revised forms will start being used August 1, 2015. If you submit a mortgage application on or after that date, you will notice them. This rule does not apply to reverse mortgages or home equity loans. Regardless of which disclosures you receive, you should always contact your loan officer if you have difficulty understanding the terms that apply to your specific mortgage. The information on the new lender disclosure documents beginning Aug. 2015 provided above is provided only as an overview and does not cover every component of the upcoming revisions.
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