Verify that the application accurately discloses your income, assets, loans, and expenses before you sign it. Never sign a form that is empty. When filling out your loan application, be honest. Do not understate your debts or overstate your income.
The lender might not have to thoroughly check the information for all loans. In general, loans with minimal paperwork verification call for sizable down payments or higher levels of property equity. Any loan agent who suggests that stretching the truth to qualify for a loan is acceptable should be avoided.
Giving a financial institution incorrect information on a loan application is illegal. The lender has a right to be aware of your actual financial situation. Never put your signature on a loan application that is blank or missing information. The broker could ask you for paperwork to prove your employment, bank accounts, etc. Your loan application will be handled more quickly the sooner you abide by these requests.
Most of the time, a mortgage broker is required to give you a Mortgage Loan Disclosure Statement within three business days of the time that you complete and give them a written loan application, whichever comes first.
Request the statement as quickly as possible, then carefully examine it. You will receive the following details regarding the loan from it:
-The quantity you are borrowing (loan principle or loan amount);
-The anticipated cost of any expenses that will be funded with principle;
-Your anticipated loan-related costs, including commissions for the mortgage professional;
-The approximate amount of money you will get from the loan after all expenses, charges, and fees have been subtracted.
Any loans or liens that are already in place against the property should be listed in the disclosure statement. Make sure that the debt is recorded if you anticipate using the new mortgage to pay it off. If you repay the loan early, a prepayment penalty must be disclosed as well.
Before you sign the loan documents, make sure you request this disclosure statement. Once you sign the loan contract or promissory note, you are then bound to accept the loan. Need not sign any loan documents if the settlement agreement does not include the parameters that you anticipate or desire. Any modifications to the original terms, prices, or costs must be promptly reported to you.
You also should receive a Loan or a Good Faith Estimation as well as any truth in Lending disclosures if the loan deal is tied to the federal government. Together, these federal disclosures give the MLDS information that is generally identical.
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