Page 4 of the Loan Disclosure is NOT just standardized same-for-every-loan boilerplate. Review Page 4 on your disclosure carefully, including these terms: Partial Payments — what policies does the lender provide? Late Payments — what penalties apply, after what period of time? Negative Amortization — are payments that do not fully cover the interest due allowed? Do they result in increased loan principal? Early Repayment, or "Demand". Can the lender require earlier repayment than originally scheduled? Assumable/Assumption: If you sell or transfer the property, can the loan also be transferred? Escrow Account details — study these to be clear on which costs are covered, and which are not.

Cash To Close — the final money required in-hand at loan consummation. Borrower-to-Seller comparison, line-by-line (if there is a seller in this transaction.) If there is no Seller, a Payoffs and Payments table may be provided instead. This comparison, and the notes, should assist in understanding how the final transaction compares to the original Loan Estimate.

The Loan Disclosure form you will receive (at least 3 days before loan consummation) provides the costs and terms of the loan arrangement. Heres what you can expect on Page 2 of this standard form: Page 2, Section A figures SHOULD match your original Loan Estimate form. These figures include: Discount Points, if applicable. Origination Charges (collected by your lender) Origination Fees (fees paid to loan brokers, loan officers or similar parties) Page 2, Section B figures should be WITHIN 10% of the total from your Loan Estimate. These figures are the services that borrowers CANNOT shop; the lender supplied a list of the parties required for these services. Page 2, Section C figures may vary from the Loan Estimate. Charges from providers on the lenders provided list should be within 10% of the Loan Estimate. Others should be as you arranged with those external providers. Page 2, Section E figures should be within 10% of the matching Loan Estimate figures. Page 2, Sections E-F-G-H figures may vary from the matching Loan Estimate figures. Page 2 also includes a break-out of the costs paid at or before loan consummation: Costs YOU will pay. Costs the SELLER will pay. Costs paid by any others. Credits (if any) from the Lender

The Loan Disclosure details the final costs and terms of the loan arrangement. The form and details are set by regulation; heres what you can expect on Page 1. Loan Amount. The total sum you are borrowing. Interest Rate. The % paid to borrow, not including fees. Terms of balloon payment (if there is one). Terms of pre-payment penalties, if applicable. Projected Payments over the life of the loan, including: Principal & Interets Mortgage Insurance Estimates of Escrow Payments, which usually do change over time. Closing Costs – details of expenses required to close the loan. Cash To Close This form must be provided at least 3 business days before loan consummation.

Regulations require lenders to document the final terms of the loan, and to deliver the document – called the Closing Disclosure – at least 3 business days before scheduled loan consummation. The Closing Disclosure cannot be verbal; it must be a digital or paper document. Any changes after deliver of the Closing Disclosure start the clock again: a new Closing Disclosure must be delivered, at least 3 business days before a revised loan consummation date. In a few circumstances, waiver of the 3-day waiting period is possible, but only when this waiting period would trigger an authentic financial emergency.

The Loan Estimate form helps you compare different loans; Page 3 of the form summarizes the key figures. Cost-over-time figures ("In ___ Years") chart out the total amount paid, and the amount applied against loan principal. This ratio usually changes over time. Annual Percentage Rate - APR - gives you the ratio of interest PLUS any applicable fees for a complete percentage cost, per year. Total Interest Percentage - TIP - shows interest over the life of the loan, in relation to the loan amount. For example, a $500K loan with a TIP of 20% indicates that you would pay $600K (20% of $500K = $100K) in total.

The Loan Estimate form addresses one of the big questions for closing: approximately how much cash will be required? Its an estimate, not a final total; heres a short list of the costs that might change, and by how much. Section A - Origination Charges should be the same amount at closing. Section B - Services that you cant shop. Closing amounts should be within 10% of the estimate. Section C - Services you CAN shop. For service providers on the list provided by the lender, the 10% tolerance limit applies. Other service providers arent bound by the estimate, but it does provide some guidance and point of negotiation for these decisions. Section E - The Recording Fees should be within 10% of the estimate. Section F, G, and H: Prepaids, Initial Escrow, and Other may vary from the estimate. Tolerance limits do not apply. These Loan Estimate figures and tolerances, plus basic loan details, Deposit Credits, Adjustments and Down Payment should serve to compute your money-on-hand requirements at closing. When assessing or comparing loans, keep these figures, ranges and tolerance limits in mind.