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What is a Loan Approval and Disclosure Package?
The Clear Progress Loan Approval and Disclosure Package contains several documents that you will be required to sign and return to your loan processor. In addition, this package specifies the conditions that you must fulfill to secure a final land/home financing final approval. Here’s a brief description of some of the documents included in this package.
Mortgage Loan Commitment:
This document states the terms under which the borrower qualifies for a mortgage loan.
Most importantly, it stipulates the “additional required items or conditions” the borrower
must return with the signed Loan Approval and Disclosure Package
Uniform Residential Loan Application:
The universally accepted residential mortgage loan application. This document reflects the information provided by the borrower in the Clear Progress Land/Home Loan Analysis form.
Good Faith Estimate:
Itemizes the fees charged for services related to obtaining the loan.
This form promotes the informed use of consumer mortgage credit by detailing the costs related to obtaining such credit.
Borrower Signature Authorization:
Statement by the borrower authorizing Clear Progress to verify information related to their loan application. For example, this form allows Clear Progress to order the borrower’s credit report, verify employment records and bank accounts, etc.
Borrower’s Certification And Authorization:
Written statement certifying that the information provided to Clear Progress is true, accurate, and complete to the knowledge of the borrower. Furthermore, it reaffirms the borrower’s willingness to allow Clear Progress to verify the information contained in the loan application.
Disclosure Notices:
This document discloses four notices to the borrower associated with occupancy, obtaining insurance, credit reporting, and financial privacy.
Equal Credit Opportunity Act:
This disclosure explains the nature of the Federal Equal Credit Opportunity Act. This act prohibits creditors from discriminating against applicants on the basis of race, color, religion, sex, marital status, age, etc.
Mortgage Loan Origination Agreement:
Agreement between Clear Progress and the borrower explaining (i) the nature of the relationship and (ii) the manner in which Clear Progress receives compensation.
Notice of Right to Receive Appraisal:
Notifies the borrower of their right to receive a copy of the appraisal report obtained in connection with the loan for which they applied so long as the borrower has paid for the appraisal.
Servicing Disclosure Statement:
Statement to the borrower that the servicing rights to the home loan may be transferred. Furthermore, it informs the borrower of his rights in such an event.
Request for Copy or Transcript Of Tax Form:
Provides the lender the ability to verify the borrower’s income directly with the Internal Revenue Service. Typically employed in the event the borrower’s loan application is reviewed as part of the lender’s standard quality control measures.
Texas Mortgage Broker/ Loan Officer Disclosure:
State specific disclosure for Texas disclosing:(i) the nature of the relationship between the borrower and Clear Progress (ii) how Clear Progress receives compensation and (iii) the amount of fees Clear Progress collects from the borrower at the time of application.
Explanation of Additional Documents only for FHA Loans
Addendum to Uniform Residential Loan Application:
Written certification by the borrower attesting to the occupancy of the property, understanding of the appraised value of the property, etc.
Notice to Homeowner:
Advises borrower of the legal obligation to make the monthly payments required by the Deed of Trust and Promissory note.
Informed Consumer Choice Disclosure Notice:
Notifies the borrower of the possibility of qualifying for other loan programs and provides a loan comparison.
Energy-Efficient Mortgages Fact Sheet:
Informs the borrower of availability of financing for energy-efficient improvements.
Amendatory Clause:
Explains to the borrower the right to cancel the contract to purchase the subject property in the event the property fails to appraise for a specified minimum value.
Important Notice to Homebuyers:
Addresses interest rates, discount points, loan fraud, discrimination, loan prepayment, and FHA mortgage insurance.
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