Borrower’s Certification Authorization
This document certifies all of the information provided the loan application is true and
complete.
Flood Hazard Notice
This indicates whether or not the property is in an area designated as a flood zone area.
Errors & Omissions (E&O) and Compliance Agreement
This states that if there are any typographical or clerical errors on the closing documents,
the borrower would agree to sign any documents that had to be corrected.
Form 4506-T Request for Transcript of Tax Return
This form authorizes the lender to obtain transcripts of tax returns.
GFE/Good Faith Estimate
The Good Faith Estimate is an estimate of all closing fees including pre-paid and escrow
items as well as lender charges.
HUD/Settlement Statement
The HUD/Settlement Statement itemizes all closing costs;
on pages 1 and 2 items that
appear on this statement include real estate commissions, loan fees, points, payoffs
and escrow amounts.
Page 3 of the Settlement Statement is a comparison of the fees
disclosed on the Good Faith Estimate (GFE) to the actual costs as listed on the settlement
statement/HUD.
The bottom portion of Page 3 shows the loan terms. The loan amount, rate, term, principal
and interest payment as well as total payment are at the bottom.
(If the borrower has
questions related to these amounts, direct the borrower to the lender.)
Identification Verification Form
This form verifies identity of the borrower and should read exactly as their state or federal
issued ID reads.
Impound Account Letter
This is the form authorizing the lender to collect real estate taxes and homeowner’s
insurance to be paid out of the borrower’s escrow account when they are due and payable.
Initial Escrow Account Disclosure Statement
This is a one-year snapshot of the borrowers escrow account.
Insurance Requirements
This document states that homeowners insurance is required during the term of the loan.
Itemization of Amount Financed
This describes the items in detail that comprise the amounts necessary to calculate the
annual percentage rate.
Mortgage/Deed of Trust
This document is recorded in county land records as evidence of the lender’s security
interest in the property.
Note
The Note is a written promise to pay a sum of money at a stated interest rate during a
specified term.
Notice of Right to Cancel
This is the borrower’s notice of their right to cancel the transaction within a specified time
frame.
Owner’s Affidavit
This states that the borrower acknowledges no additional liens, judgments, encumbrances
or claims against the property. It also states that no one else owns the property besides the
borrower, there’s no contract for sale, confirms marital status, no delinquent taxes and no
zoning law violations.
Payment Letter
This is the borrower’s principal, interest, real estate taxes and homeowner’s insurance
which total the monthly payment.
Riders (if applicable)
- Planned Unit Development (PUD) Rider - Requires borrower to pay fees or assessments that may be levied by an HOA to prevent any liens by the association
- Second Home Rider
- 1 - 4 Family Rider
- Manufactured Home Rider
- Condominium Rider
- ARM Rider
Servicing Disclosure Statement
This document discloses the fact that the lender has the right to sell, transfer or assign the
servicing rights to the loan.
Signature Affidavit and Name Affidavit
The Signature & Name Affidavit lists variations of the borrowers name such as “AKA’s”
that the lender may have located when checking their credit or when the title search was
completed. The variations may differ from their name as it appears on the lender’s loan
documents.
Truth in Lending (TIL)
This is the Truth in Lending statement. It will include the following information:
* The annual percentage rate (APR)
* The finance charge
* The total of payments (the amount the borrower will have paid after they have made
all of their scheduled mortgage payments)
Uniform Residential Loan Application/1003
This is the final, typed version of the loan application.
W-9
This form verifies the borrower’s Social Security Number.
