Mohamad Alodah asked:




By the time you are finished finalizing the purchase of a home you are going to see so many forms that you may start to have dreams about them. One common myth is that these mortgage loan applications are standard across the industry but the truth is that they vary from one lender to the next. In many cases these forms are specifically designed to protect the interests of the lender.

Required forms for home purchases

While the forms that are used will differ between lenders, there are three loans that are all required for all residential transactions. The 1003, or the loan application, contains your financial information like your income, debt and credit history and is commonly used to qualify a buyer for a loan. Then there is the Good Faith Estimate which is simply an estimate of the closing costs of the home.

The last form is the Truth in Lending statement which is essentially a detailed summary of the loan including the interest rate, finance charges and the monthly payments. These forms will start to look the same after you are exposed to more of them. However, you need to be sure that you understand the details of each form before you sign your name on the dotted lines.

Some extra precautions to take

As mentioned above the types of forms that lenders use for residential purchases will vary so you will need to read through each of them thoroughly. In situations where you do not understand certain terms or if conditions are not clear then it is in your best interest to consult with a lawyer. In many cases you probably do not need a lawyer but taking precautions will only serve to benefit you.

When it comes to the big lenders in the industry most of the mortgage documents are standard but it is still a good idea to read through each form. Always ask for these documents ahead of time so you can examine them in detail before you finalize the transaction. Just remember too that signing any mortgage documents with inaccurate information could lead to mortgage fraud charges.

Jeff

Buff asked:


1st mortgage only.

Lois

Kevin Benner asked:




If you are trying to get the best possible rate on 2nd mortgage home equity loans, it’s a good idea to learn as much as you can about the process. You have probably seen countless websites that promise to provide you with a list of lenders that offer the best rates in your area. Many of these sites do nothing more than provide a listing of interest rates for national lenders.

A quality mortgage referral website will make it a priority to inform and educate a customer whenever and wherever possible. In the end, these quality websites want you to find the best possible terms for your 2nd mortgage home equity loans. Cultivating relationships with the top lenders, in the business of providing customers with the ideal combination of low rates and ethical business practices, allow consumers to find a good rate at the lowest cost possible in a more time efficient manner.

What to Look for in 2nd Mortgage Home Equity Loans

If you are not sure how 2nd mortgage loans work, they are designed to allow you to borrow against the equity in your home. The equity in your home is the difference between the fair market value of your home and the amount you still owe on the mortgage. Since homes typically appreciate in value over the years, you may have more equity in your home than you realized.

When evaluating 2nd mortgage home equity loans, it’s important to consider more than just the interest rate. You will also want to find out what the APR is for your loan. APR, or annual percentage rate, is a measure of the costs associated with the credit, including interest rate, points, and finance charges.

Jane