Some of the forms are: affiliated business arrangement disclosure statement, affilitiated business arrangement disclosure, interest rate and loan point agreement, uniform residential loan application, choice of settlement agent notice.
I didn't think I have to sign so much for a pre-approval letter.
2007-11-14 10:06:50 · 8 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
I live in the state of Virginia. Yes, there are a lot of papers, all legal sized. Some of them don't have titles and some have a hole punch through it. Plus, I didn't want to write each one down...feeling a little lazy.
2007-11-14 10:18:23 · update #1
Also, does signing these papers mean I'll have to select his mortgage, or can I shop around and choose someone else when I have selected a home?
2007-11-14 10:29:03 · update #2
If you are trying to get an actual pre-approval (actually approved for an amount of money to borrow), yes these forms need to be signed, because you are applying for a loan, even if your property has not been selected yet.
If you are really in the market for a home at this time, I would get the actual pre-approval. Your Realtor will bend over backward to find you a home, you are like a cash buyer at that point.
Hope this helps
2007-11-14 10:13:33 · answer #1 · answered by L.J. Watcher 2 · 0⤊ 1⤋
To define terms: A pre-approval is a loan application. There are 3 parts to a loan application. The first one is you, the second is the house and the third is the ownership. Since there is no house yet, there can't be an appraisal on the house or a title search. But what you're getting is a letter, usually called a Loan Approval Notice, that tells the seller and real estate agent that they are not wasting their time on you, and you really can buy a house.
Don't confuse this with pre-qualification, which is what a real estate agent does. They ask you what your income is and compare it to the debts you disclose. All of this is based on what you tell them. Believe or not, some people aren't always truthful, and others forget things. This basically helps them avoid showing you a house you can't afford.
Lenders are required by Federal law to send you certain disclosures within 3 days of application. In addition, there's a probably a paper copy of the application, a Truth in Lending Statement, a 4506T form so they can get tax returns if needed, an authorization form so they can get 3rd parties to cooperate (like for a payoff on a refinance or an update of your credit report...the lender can sometimes help get that cleaned up if there's an error). If you don't sign the authorization, you might slow down the process because they may need something they can't get without it. The affiliated stuff tells you that the lender is connected with those vendors. As for the rest of it, if you don't sign it now, you'll sign it at closing. The lender wants it to be able to prove he sent it to you as required.
2007-11-14 18:26:09 · answer #2 · answered by Debdeb 7 · 0⤊ 1⤋
Not abnormal, it has to do with how this company defines an application for federal reporting - some define an application one way and others in another way.
Personally, I don't think you should have asked someone for a pre-approval before you have shopped for the lender of choice. That is just not fair for you to do that, and personally I wouldn't want your business under those conditions.
If you came to me now and asked for a mortgage quote - I would not give you one - no loyalty or respect for me as a professional.
2007-11-14 23:34:07 · answer #3 · answered by walkinandrockin 3 · 0⤊ 0⤋
The affiliated business arrangement disclosure are just form saying that you know of the company that they are affiliated with i.e. they work directly with a real estate brokerage. This is to inform you and unless it states other wise it binds you to nothing
Interest and loan point agreement is the meat of what you are singning cause it is what they are promising you for your loan.
uniform residential loan application is s standard form that you fill out to apply for a loan.
All of these forms seem to be pretty standard and as long as there isnt any jargon that you are not sure of you can feel comfortable in singing them.
2007-11-14 18:31:38 · answer #4 · answered by young2bballin 2 · 0⤊ 1⤋
In Arizona the buyer is required to sign the LSR or loan approval.
2007-11-14 20:07:20 · answer #5 · answered by Debt Free Dale 1 · 0⤊ 1⤋
That is not a preapproval, a preapproval is usually one to two pages that says that the bank may finance your home purchase.
Read each document, and sign nothing unless is says Pre-Approval in the language of the document.
2007-11-14 18:29:11 · answer #6 · answered by Lear R 2 · 0⤊ 2⤋
You're not signing for a pre-approval. From the list you have provided, you are applying for a mortgage. If you're just looking for a pre-approval, don't sign it.
2007-11-14 18:10:36 · answer #7 · answered by acermill 7 · 1⤊ 2⤋
never heard of that. what country are you in?
2007-11-14 18:10:07 · answer #8 · answered by Anonymous · 0⤊ 2⤋