Mortgage loans consist of an enormous amount of documentation – mostly disclosures designed to protect the borrower.
Obviously, the advice to read every document is much easier said than done. Certainly, if you were to go through every single line on every single disclosure included in a loan package it could easily take hours or even days. While we certainly do not advocate that you skip or quickly glance over any documents if you are going to do so, then focus on the important disclosures – this typically consists of the Loan Application and Loan Estimate (LE).
One of the most important documents in your loan package is your loan application or ‘1003’. This is where you list all of your personal and financial details and is the backbone of your application. It is also common practice for Mortgage Loan Originators to make edits to an initial loan application after their review of your financial information.
For this reason, while there might be minor discrepancies in things like your income or assets you should point out to your loan officer if there are any major issues. Furthermore, typos can happen along with other clerical errors. Oftentimes catching these early on can save a lot of time for all parties throughout the loan process.
Depending on whether you are looking at an initial loan package or a final loan package the next most important item will be your Loan Estimate(LE) or Closing Disclosure (CD). In fact, we actually have a separate blog on how to read these in full detail because that’s how important this is. Ultimately, this document contains all the information about your new loan.
For more information, please do not hesitate to contact our office at (760) 930-0569 and one of our Mortgage Loan Originators will be happy to answer any questions you may have.
