Disclosure
Related Terms: Disclosure Statement
Disclosures are documents in which lenders are obligated to be completely transparent about all the terms of the mortgage agreement that they are offering you. The revised mortgage disclosures have combined four different forms into the TILA- RESPA Integrated Disclosure.
Disclosures give you information about your mortgage, such as a list of the costs you will incur, or details about the escrow account your lender will set up. Since all these steps take place at different times over the course of the mortgage transaction, you may receive disclosures in stages accordingly.
During the loan application process, your loan officer will give you the Loan Estimate, which is part of the TRID. You should receive this disclosure, which combines the previous Truth-In-Lending Statement and the Good Faith Estimate, no later than three days after you file an application for a loan. The Loan Estimate helps you understand the risks and costs of the mortgage.
Three days before closing, you will receive the other half of the TRID, the Closing Disclosure. This combines the HUD-1 Settlement and final Truth-In-Lending Statement. Whereas the first disclosures gave you estimates of the costs you would incur, the Closing Disclosure tells you the actual costs. You have the right to dispute these charges and renegotiate, since they could be substantially higher than the estimates shown to you initially.
During the loan application process, your loan officer will give you the Loan Estimate, which is part of the TRID. You should receive this disclosure, which combines the previous Truth-In-Lending Statement and the Good Faith Estimate, no later than three days after you file an application for a loan. The Loan Estimate helps you understand the risks and costs of the mortgage.
Three days before closing, you will receive the other half of the TRID, the Closing Disclosure. This combines the HUD-1 Settlement and final Truth-In-Lending Statement. Whereas the first disclosures gave you estimates of the costs you would incur, the Closing Disclosure tells you the actual costs. You have the right to dispute these charges and renegotiate, since they could be substantially higher than the estimates shown to you initially.
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