We Already Signed These

We Already Signed these

It’s a very common statement made by people going through the mortgage loan process. When making or filling out your loan application you will most likely be signing some releases and / or initial disclosures. Some of these you may sign again within the next couple of days, as a full loan disclosure package will be sent to you.

Many circumstances may change throughout the loan process regardless of whether you are just refinancing or seeking financing for a real estate purchase. The most common reasons for these changes may be a difference in expectations in the appraised value, changing the note rate on the loan application from floating rate to a locked rate especially if the APR changes to a higher rate, or paying down debts in order to change your debt to income ratio. These items have the most effect on changing what is on your paperwork or disclosures.

Prior to closing you will receive your final disclosures that will need to be acknowledged. At this point the numbers on the disclosures still may not be correct. These numbers can only change if they are to improve your situation. These documents are reviewed by the lenders closing department, your loan originator and your closing attorney or title company will adjust the final figures to balance out. These figures sometimes stay the same, however most times they are adjusted in your favor.

At the closing table you will be ‘resigning or reaffirming’ all the same documents you have already signed but this time they will include any final adjustments in the loan.

The only exception to this is the liabilities section of the 1003 form (loan application). This form is automatically populated from your credit report. At the time of closing almost everyone has a different balance on their debts at that time. This will not be changed. This does not affect your loan at this time. This is one of the very few things that should not be changed or can be at the closing table. With any other items you see that are incorrect you should point out to the closing agent before signing these documents.

When in doubt ask, don’t assume everything is correct. This is your loan and it is a contract that you may be stuck with for a very long time. Again, don’t be afraid to ask, read or research. Know your facts and we will see you at a happy closing table.