Initial Disclosures

In the beginning being properly prepared can make of the difference between a good start and a shaky one. What do I am mean by this?

When a loan originator receives certain information, they are required to disclose to the borrower(s).  What is that information?

The industry uses the acronym, ALIENS.

• Address of the subject property,
• loan amount,
• income,
• estimated value of the subject property,
• name, and
• social security number.

The loan originator is responsible to making sure you are disclosed within three business days. The more information your loan originator has received from you the more accurate the disclosures will be, most specifically your loan estimate. Major items that could impact the loan estimate the most if the authorization to pull your credit report and your total assets to cover down payment, closing cost and reserve funds if required.

Even the most disciplined borrower could experience a bit of frustration when receiving their first loan estimate if they held back or have not yet submitted all the needed information for a more accurate loan estimate. Just as important, along with the loan estimate you should receive about another 20 plus pages of other important disclosures. Most of these disclosures describe how you should expect to be treated through the mortgage loan process. It’s important to read these forms and notices. Some of these disclosures or notices will also inform you not hide or misrepresent your financial status or falsify any documents.

These notices and forms are two-fold, first they let you know the loan originator and lenders responsibilities to you the borrower and your responsibility to be truthful them. A consumer has the right to file a complaint with the CFPB or their states regulating office if they feel they have been treated wrongly. But remember a loan originator or lender has a responsibility to report any fraudulent activity of a consumer (borrower) to specific federal and state agencies.

Being well prepared with your initial disclosures in the beginning can make a transaction go very smoothly. Get all your facts, ask questions, know who you are dealing with, read all your disclosures and ask more questions. The mortgage loan process should be exciting as well as informative, not stressful and frustrating. If you prepare yourself well in the beginning and ask questions we will see you at a happy closing table.