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ABOUT THE DOCUMENTS YOU ARE SIGNING
Read this for information about the loan paperwork. Included are details about each form and answers to the most frequently asked question we receive. We are available by phone or email to help you.
There are 3 parts to the paperwork to be approved for a loan
1) The Mortgage Application
2) The Application Disclosures
3) The Supporting Documents (Asset, Income & Liability statements)
See the file “Document Checklist” in your folder for information about the Supporting Documents.
Mortgage Application
In our business this standard government approved form is a called a “1003”. Much of the application is already filled in for you. Review the information and make any corrections.
PAGE 1
If you have a co-borrower, both of you sign the top of page 1
Review the loan amount, rate, number of months, amortization type
Check the subject property address
If a refinance, complete the Year Acquired, Original Cost, Existing Liens, and Purpose of Re-finance
Under borrower and Co-Borrower please include
Your name as you typically sign a legal document
Social Security Number
Home Phone (or cell)
Date of Birth
Years School (High school = 12) + any other education, marital staus, and the number of dependants you have.
If you have been in your home less than 2 years, include previous address
Initial the bottom of page 1
PAGE 2
Complete Employment Information, Address, Length of Employment, Position, and the Phone Number
Provide a 2 year history
List any income that is not included on a paystub (i.e. alimony, social security)
Initial the bottom of page 2
PAGE 3
You DO NOT need to fill in the asset information on page 3
Liabilities are from the credit report. You do not have to make any corrections.
Schedule of Real Estate Owned – Add any property OTHER than your primary residence including land, condos, investment property. We do not need timeshares.
Initial the bottom of page 3
PAGE 4
Declarations (Section VIII) – If filled in, review, if not, please complete
Sign and Date midway on the page
Government Monitoring – you are not required to disclose your Ethnicity and Race but are requested to do so by the Federal Government.
PAGE 5-6
Will only exist if need to include additional liabilities continued from page 3
If you havet this page(s) Full signature at the bottom of the page
Disclosure Documents
PLEASE SIGN AND DATE EACH OF THE FOLLOWING
Good Faith Estimate
This shows you the details of the transaction including all the costs as well as the estimated total payment.
For a No Cost loan all the costs are shown in brackets. See lower left hand section "FUNDS NEEDED TO CLOSE" to verify that this is No Cost or the amount of the costs for this loan.
** IMPORTANT** Line 900 and 1000 are an estimate of your "Pre-Paid items" The escrows plus the interest. See the file in your folder "Closing Funds" for more details
Please know that at this point in the loan process it is likely that the taxes and insurance are only estimates and will be updated during the process. Note, that if you are WAIVING ESCROWS, the tax and insurance estimates are still included here. We must, by law disclose these amount even if YOU ARE PAYING ANNUALLY (waiving escrows). If you are not sure if you have waived escrows, ask your loan officer. There is almost always a fee to waive escrows.
Truth in Lending
Informs you of the annual percentage rate (APR). If this is a No Cost loan, the APR = Rate are the same. If you are paying closing costs the APR will exceed the Note rate. The bottom of the form tells you that if you are late on a payment there can be a fee.
Borrower's Authorizatoin
Gives DNJ Mortgage permission to verify information about your credit profile and to discuss this information with other companies involved in the loan transaction (i.e. the lender, credit reporting company, your homeowner's insurance agent).
Borrower's Certification and Authorization
Certifies that the information you have provided is true and complete, and like the Borrower's Authorization, allows us to verify this information.
Disclosure Notices
This is really 3 forms on one page
Affidavit of Occupancy – Confirm this is your primary, second home or investment
Anti Coercion - DNJ Mortgage is not requiring you use a specific insurance company. Choose whoever you prefer.
Fair Credit Reporting Act - We will review and provide you information about your credit report
Equal Credit Opportunity Act
We will not discriminate
Mortgage Loan Origination Agreement
Tells you two important facts
1) DNJ is a mortgage broker, meaning we are not the one who is lending you the money
2) The lender may pay us a commission for the business we bring to them
Patriot Act
Informs you we need a copy of your driver's license, as well as the co-borrower if applicable
Privacy Policy
You should know at DNJ we DO NOT sell our customers names, mailing addresses or email addresses. You can see our full Privacy Policy online at www.nocostmortgage.com/AboutUs
Servicing Disclosure
Your loan can be transferred to another mortgage company over time. While this would change where and to whom you would send the payment they can not change the terms of your loan (i.e. rate, years)
Request for Transcript of Tax Return 4506
We most likely do not need a copy of your tax return. This form will not give us access to your tax return. This is only used IF the lender believes a W-2 form or tax return has not been recorded with the Federal Government.
Attorney Selection
We have made a recommendation as to the attorney to use for closing. It is your right to pick the closing attorney. Which attorney you will use was part of the decision on the costs and fees (or No Cost) of your loan. Make sure you and your loan officer have a clear understanding of your selection.
Example of Amortization
Educates you about how a mortgage loan is amortized. Ask your loan officer if you have any questions.
Loan Program Disclosures
DNJ form (not a government form) to confirm with you aspects of the loan
Affliated Business Arrangement Disclosure Statement Notice
Some of the owner's of DNJ Mortgage are also owner's of the Tryon Title Agency.
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