The good faith estimate isn't the
only documentation the lender must provide you with within three
days of applying for a mortgage.
The other required disclosures
include:
The Truth in Lending Act
statement
The federal Truth in Lending Act
requires lenders to disclose to you, the borrower, the terms and
conditions of a mortgage, including the annual percentage rate,
additional fees and other charges. This must be provided in
writing.
However, some lenders may lawfully
exclude certain fees, such as the property appraisal, title search
and insurance, notary and some recording fees, credit report and
flood certification. This makes it hard for borrowers to compare the
costs of a mortgage.
Ask your lender to go over the Truth
in Lending statement with you. What you want to do is break each
charge or fee down. If the information that is disclosed changes,
the lender must provide you with an updated form before closing.
The servicing disclosure
statement
Federal law gives you the right to
know if someone else will eventually be your mortgage servicer. This
statement will tell you whether or not your mortgage will be sold or
assumed by another lender that will collect payments, handle
disputes, send out escrow statements and perform other lender
functions after closing.
Affiliated business arrangement
disclosure
If you apply for a mortgage through a
company operated by a builder or real estate agent, you should
receive an affiliated business arrangement disclosure when you are
referred to the mortgage company. The form states that you are not
required to use the services of this specific company and are free
to shop for a mortgage anywhere you choose.
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