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.