FAIR HOUSING COUNCIL OF OREGON
** NOTICE: This page and all content linked from it is in draft form. **
Contents of this Page:
Purpose
What to Expect When Appling for a Mortgage
General Recommendations
Beware of
Predatory Lending
About the
Standard Loan Application
Using this Interactive Tool
Jump to the:
Interactive Uniform Residential Loan Application
Purpose
The Fair Housing Council has selected the Uniform
Residential Loan Application to use as a sample loan application because it
is the standard form used for all
Fannie Mae and
Freddie Mac conforming, and FHA / VA residential mortgage loans.
It is our aim to demystify the loan application process by providing tips and instructions you can use in filling out this or other similar loan application forms. We provide this material to assist you in becoming an informed borrower with an understanding of what will be asked of you and why, the importance of your credit score is in obtaining a loan, how to spot and avoid predatory lending situations.
Note that in addition to hyperlinked tips and instructions specific to this form, we have provided you with additional links throughout this document with more general buying and lending information and definitions.
If you have questions about your credit or mortgage process:
- Consult with your chosen lender and / or sales agent.
-
To check mortgage
lender licenses and registrations contact:
---For state-chartered lending institutions contact the Oregon Dept. of Consumer and Business Services at 866/814-9710, or http://dfcs.oregon.gov
---For commercial banks contact the Office of the Comptroller of the Currency at www.occ.treas.gov or 800/613-6743
---For savings and loans contact the Office of Thrift Supervision at www.ots.treas.gov or 800/842-6929
---For credit unions contact the National Credit Union Administration at www.ncua.gov or 703/518-6330 - To report lending scams contact the State Attorney General Office at 877/877-9392, www.doj.state.or.us, or consumer.hotline@doj.state.or.us.
- For a list of Dept. of Housing and Urban Development (HUD)-approved housing counseling agencies by state visit www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm.
- If you feel you have been a victim of predatory lending, contact the Oregon Dept. of Consumer and Business Services Division of Finance and Corporate Securities at 866/814-9710, or http://dfcs.oregon.gov.
- Read an informative brochure offered by the State of Oregon’s Dept. of Consumer & Business Services on avoiding foreclosure .
-
Visit http://www.dontborrowtrouble.com/en/pre_pay.html for important information about prepayment penalties from Freddie Mac.
Some of the instructions and notes provided here were based on information provided by Fannie Mae at https://www.efanniemae.com/sf/formsdocs/forms/1003.jsp.
What to Expect When Applying for a Mortgage
Your lender may accept your application during a face-to-face appointment, over the telephone, through the mail, or via the Internet. S/he should complete all blanks and attach any separate exhibits, details, or statements that are relevant to underwriting the mortgage. You will be required to sign the original application at the time it is completed as soon as possible thereafter; an electronic signature or facsimile is acceptable.
Never sign an application or legal document with blanks not filled in or “scratched out” as unscrupulous individuals could alter the document without your knowledge, making it look as if you had signed it with the information s/he had added.
Your lender should retain the original application with any supporting documentation. Before or at the closing you will be required to sign a final application your lender prepares based on his/her verification of the information you provided in the original application. You should read and review the final application carefully. Be certain that you thoroughly understand it before signing it and that all of the information is accurate.
General
Recommendations
Never sign any document you don't understand or that has blank lines
that are not filled in or "scratched out."
Review all of your loan (and all of your legal and purchase) documents right away to be sure you understand them. Be sure you know how your loan payments will be credited and what rights you have if you miss a mortgage payment.
For example, your Truth-in-Lending disclosure and your Note will contain information about when your payments will be due and how to ensure your payments are posted on time. If your loan is transferred or sold to another company down the road, which is common practice, the lender or the holder of the loan must notify you in writing so you know when and whom to send your payments to.
It is also very important that you know whether you or your lender is responsible for your property taxes. You must pay them either way, but you should know if your lender has wrapped the expense into your monthly mortgage payment amount and will pass on the money to your county tax department, or if it is a bill you need to pay directly to the county yourself.
Much of
these General Recommendations were borrowed from the
State of Oregon’s Dept. of Consumer & Business Services'
brochure on
avoiding foreclosure.
Beware of Predatory
Lending
Predatory lenders peddle unjustifiably expensive loans to homeowners, buyers, and other loan consumers
.
They target those with low incomes or those assumed to have poor credit,
including racial and ethnic minorities as well as seniors and individuals
with disabilities. Since all of these targeted populations are members of
groups who are protected under fair housing laws, we at The Fair Housing
Council are interested in helping you understand and protect your rights.
People who want to buy a home, consolidate debt, or finance home improvements often enter into predatory loans unknowingly. You should know that predatory loans are not necessarily the same as subprime loans.
Another predatory loan practice is to sell one loan product but have paperwork for a different loan product at the closing table. Buyers either don't understand the difference, or if they do, feel pressured to accept these terms or risk "losing your loan" and any prepaid costs. The excuse is that the lender changed their mind, which may or may not be true.
Predatory loans are often made by loan reps that use high-pressure tactics and charge considerably more than reasonable interest rates. Predatory lenders intentionally lend more than the homeowner can afford to pay back and / or don’t fully disclose the loan terms and costs, as is required by law — two tactics that put homeowners at risk of losing their home.
You are strongly encouraged to "shop around", that is, call banks yourself for terms, talk to with yourcredit union if your are a member, and / or talk to more than one mortgage broker. You should also educate yourself on the difference between mortgage brokers that are affiliated with a single bank and those without affiliation. The latter sounds like they would be a better choice, but frequently they are not!
You should know that your lender is legally required to provide with a Good Faith Estimate of the settlement costs for the transaction. Your Good Faith Estimate should include all terms and conditions of your loan including: loan amount, interest rate and over cost of the loan, amount of monthly payment, pay back period, the cost for any buy down points, any balloon payments, any prepayment penalties, etc. You should receive your Good Faith Estimate before you make your loan application.
Learn more about predatory loans online at http://dfcs.oregon.gov, or call (866) 814-9710.
About the Standard Loan
Application
Mortgage lenders will use a form such as this to record relevant
financial information about you when you apply for a conventional home
loan. This sample loan application is designed to print as a letter-sized
document. You should know, however, that lenders might use the same form in
a legal-sized format with different fonts or margins that may affect
pagination, or (if you are not applying for a conventional loan), may use a
different form all together. The importance of reviewing this interactive
sample form is to educate you about the mortgage process in general.
Using
this Interactive Tool
Click here to open a copy of the Uniform Residential Loan Application in Portable Document File (PDF)
format. You will need the Adobe® Reader® software to view this document.
Download a free copy of Adobe Reader if needed.
Once opened, you may read the file online or save a copy by selecting File / Save As and choosing a location on your computer to save the sample loan application document.
Whether reading the file online or saved to your computer, simply roll your mouse over the form to find hyperlinked sections.
LEFT click once on each link to view the instructions relevant to that section. When you’re done with each set of instructions or tips, hit the "Return" button at the bottom or use your browser's "Back" button to continue on with the Interactive Uniform Residential Loan Application.
