A. The title company will need the following information from you in order to research court records on behalf of the lender:
FULL LEGAL NAMES, including how you want your name to read on title.
We will also need the wife’s maiden name as well as previously married names, if any.
MARITAL STATUS: are you currently married? Divorced? Widowed?
IN THE STATE OF LOUISIANA, ALL NAMES ARE RUN IN THE COURTHOUSE BECAUSE JUDGEMENTS FOLLOW THE INDIVIDUAL
SOCIAL SECURITY NUMBERS: This information is necessary in order to confirm any possible judgements or liens if found in the courthouse and is required by the lender as well.
HOMEOWNERS INSURANCE: It will be necessary for you to arrange for your Homeowners insurance to be in place prior to the closing, The homeowners insurance information WILL delay your closing package from the lender. Without it, the lender cannot generate a closing package. It is extremely important for you to decide on the homeowners’ insurer well prior to the closing,
TERMITE CERTIFICATE: If the termite certificate is requested by you and you would like for this to be part of the closing, please let us know ahead of time.
Q. WHAT IS A TRUTH IN LENDING DISCLOSURE AND WHY DO I RECEIVE IT?
A. The truth in lending is designed to give you information about the costs of your loan so that you may compare these costs with those of other loan programs or lenders.
Q. WHAT IS THE ANNUAL PERCENTAGE RATE?
A. The annual Percentage Rate (APR) is the cost of your credit expressed as an annual rate. Because you may be paying loan discount “points” and other “prepaid” finance charges at closing, the APR disclosed is often higher than the interest rate on your loan. This APR can be compared on other loan programs to give you a consistent means of comparing rates and programs.
Q. WHY IS THE ANNUAL PERCENTAGE RATE DIFFERENT FROM THE INTEREST RATE ON MY NOTE?
A. The APR is computed from the amount Financed and based on what your proposed payments will be on the actual loan amount credited to you at settlement. In a $50,000 loan with $2,000 prepaid finance charges, a 30 year term and a fixed interest rate of 12%, the payments would be $514.31(principal and interest). Since the APR is based on the amount financed ($48,000.00) while the payment is based on the actual loan amount given ($50,000.00) the APR (12.553%) is higher than the interest rate.
Q. WHAT IS THE FINANCE CHARGE?
A. The finance charge is the cost of the credit expressed in dollars. It is the total amount of interest calculated at the interest rate over the life of the loan, plus prepaid finance charges and the total amount of any required mortgage insurance charged over the life of the loan.
Q. WHAT IS THE AMOUNT FINANCED?
A. The amount financed is the loan amount applied for, minus the prepaid finance charges. Prepaid finance charges include items paid at or before settlement, such as loan origination, commitment or discount fees (“points”), adjusted interest, and initial mortgage insurance premium. The amount financed is lower than the amount you applied for because it represents a NET figure. If you applied for $50,000 and the prepaid finance charges total $2,000 the amount financed would be $48,000.
Q, DOES THIS MEAN I WILL GET A SMALLER LOAN THAN I APPLIED FOR?
A. No. If your loan is approved in the amount requested, you will receive credit toward your home purchase or refinance for the full amount for which you applied. In the example above, you would therefore receive a $50,000 not a $48,000 loan.
Q. WHAT IS THE TOTAL OF PAYMENTS?
A. This figure represents the total amount you will have paid if you make the minimum required payments for the entire term of the loan. This includes principal, interest and mortgage insurance premiums, but that does not include payments for real estate taxes or property insurance premiums.
Q. MY DISCLOSURE SAYS THAT IF I PAY THE LOAN OFF EARLY, I WILL NOT BE ENTITLED TO A REFUND OF PART OF THE FINANCE CHARGE. WHAT DOES THIS MEAN?
A. This means that you will be charged interest for the period of time you used the money loaned to you. Your prepaid finance charges are generally not refundable, nor is any interest which has already been paid.
Q. WHAT IS THE FILING FEE?
A. The filing fee is an estimate of the cost of recording the legal documents, mortgage, deed of trust, deeds connected with your transaction. The fee will be charged at settlement, please do not send it now.