Common Loan Documents

Settlement Statement

This document shows all the settlement charges involved in your loan.

Notice of Right to Cancel

Allows borrowers to cancel the loan within three days from today. In other words, you can sign today and change your mind if you are not happy with something that you read in the documents later tonight. That way, you will not feel pressured to read every single word of the documents during your appointment. The lender requests that you both sign three of these. I will keep one; you will each keep two signed copies.

Deed of Trust or Mortgage

Also called a “security instrument.” It gives the lender an interest in your property; it will be recorded in the public (or real estate) records.

Promissory Note or Real Estate Note

States how much you have borrowed, the length of time that you have to pay it back, and the interest rate.

Initial Escrow Disclosure

Discusses your escrow account.

Truth in Lending Disclosure Statement

Explains all costs of your loan.

 

First Payment Letter

Explains when your first payment is due.

 

Uniform Residential Application

This is the application that you filled out at the beginning of your loan. You are requested to sign it again to confirm that it is accurate.

 

APR & Finance Charge Summary

Explains the cost of your loan.

 

Itemization of Amount Financed Borrower(s)

Explains the amount financed.

 

Borrower(s) Acknowledgement of Receipt of Disclosures

Acknowledges that you have received applicable disclosures.

 

Attorney Representation Notice

Explains that the attorney who drew the documents does not work for you; he or she works for the lender.

 

Borrower Affidavit

You will awear (or affirm) to the truthfulness of the contents of the document.

 

Borrower's Closing Affidavit Borrower

You will swear (or affirm) to the truthfulness of the contents of the document.

 

Certification and Authorization to Release Information

Describes when the lender may have to release information about you, the borrower.

 

Document Correction Agreement

States that you will work with the lender to provide any additional information or funds required, if any, to complete the loan package.

 

Error & Omissions / Compliance Agreement

You will work with the lender to provide any additional information requested to complete the loan package.

 

Limited Power of Attorney / Correction Agreement

Allows correction of the documents for clerical or scrivener’s errors.

 

Name Affidavit

Lists names that you have been known as. You will sign as stated by names that you have been known by. If the name listed does not apply to you, write in "Never Known As."

 

Notice of Assign, Sale or Transfer of Servicing Rights

You understand that this loan may be sold or assigned to a loan servicer.

 

Notice of No Oral Agreements

States that there are no oral agreements between parties that are not documented in the loan documents.

 

Collateral Protection Insurance Notice

You understand that you must keep the property insured.

 

4506-T Cover Sheet

You agree that the lender may collect a copy of your tax return from the IRS.

 

Form 4506

You agree that the lender may collect a copy of your tax return from the IRS.

 

Patriot Act Form

Identification of the borrowers. This is a required document.

 

Signature Affidavit

Lists different names that you have been known as. You will sign as stated by names that you have been known by. If the name does not apply to you, write in "Never Knows As."

 

Marital Status Affidavit

You will swear to information about your marital history.

 

Refinance Affidavit

Confirming information about the property related to your loan.

 

Survey Affidavit

Relates to facts about your current property survey.

 

Affidavit of Debts and Liens

Makes statements about liens that you may have on the property that relates to your loan.

 

Homestead Affidavit

States this is your primary home, your homestead.