Loan Document Defintitions

Question 1

Lenders Instructions

Answer 1

Typed out instructions to the escrow and title companies from the lender on exactly how the lender wants their loan closed.

Question 2

1003 loan application

Answer 2

In the mortgage industry a loan application is call ten-oh-three. This is referred to the form number, 1003

Question 3

Notice of right to cancel

Answer 3

In a refinance on a primary residence, the borrower gets three business days from the day the loan is signed to cancel it.

Question 4

Closing Disclosure

Answer 4

This is what informs the borrower about everything pertinent about the loan.

Question 5

4506

Answer 5

The borrower signs this form to give permission to the lender so the lender can request and receive a copy of the borrowers taxes from the IRS

Question 6

occupancy Affidavit

Answer 6

This tells the lender whether the property being bought is a primary residence, second home or investment property. If it is a primary residence then the interest rate would be lower then that of a second home/investment property

Question 7

California Domestic Partnership Addendum to Uniform Residential Loan Application

Answer 7

This form tells the lender if the owner has or doesnt have a domestic partner

Question 8

Borrower Certificate and Authorization

Answer 8

This form gives permission to the lender to confirm employment, have their assets, credit report and financial records

Question 9

Hazard insurance Authorization and Requirements

Answer 9

Homes that have mortgages have to have hazard insurance

Question 10

W-9

Answer 10

Interest paid on loans is tax deductible. This allows the borrower to write off the interest on their taxes

Question 11

Acknowledgement of Receipt of Appraisal Report

Answer 11

If there was an appraisal completed, the borrower signing this confirms they have a copy.

Question 12

Compliance Agreement

Answer 12

This form informs the borrower if anything else needs to be signed before the loan funds, the borrower will comply with any requests

Question 13

Consumer Credit Disclosure

Answer 13

This form gives the borrower their credit scores

Question 14

The Housing Financial Discrimination Act of 1977 Fair Lending Notice

Answer 14

This says the borrower was not discriminated against

Question 15

Hazard Insurance Disclosure

Answer 15

The max amount of insurance coverage the lender can force a borrower to have is replacement cost of the house, not the appraised value.

Question 16

California Impound Disclosure/Waiver

Answer 16

This form says whether the borrower has to have an impound/escrow account or if they request to have one of decline to have one

Question 17

California per Diem Interest Disclosure

Answer 17

The borrower has to pay interest the day the loan funds. This page tells the borrower how much interest they pay per day. Sometimes a borrower may have to pay interest on two loans at once, if one loan isnt paid until monday but the new loan starts on friday.

Question 18

Signature Affidavit and AKA Statement

Answer 18

The borrower signs this confirming their signature is their signature. The lender uses this to confirm that all signatures are correct and no signatures were forged.

Question 19

Contact Verification Form

Answer 19

The borrower confirms all contact information the lender has for them is correct

Question 20

Counseling Checklist for Military Home Buyers

Answer 20

On VA loans the VA is letting the veteran know if they missed any payments, home counseling may be required.

Question 21

USA Patriot Act

Answer 21

This is where the notary signing agent records for the lender the ID information used to identify the borrower

Question 22

Federal Equal Credit Opportunity Act Notice

Answer 22

This lets the borrower know that credit score was a determining factor on their approval.

Question 23

Flood Insurance Coverage Subject to Change Disclosure

Answer 23

The lender is letting them know that if they are ever to be rezoned as a flood zone they will be required to have flood insurance at that time.

Question 24

Initial Escrow Account Disclosure Statement

Answer 24

This form shows how the impound will look in the next 12 months. it shows the balance every month for the next 12 months.