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Truth in Lending disclosure

Posted on: 05th Nov, 2009 02:52 pm
I just got a package in from wells fargo. Was not sure what it is but it is package of paperwork. One of them being a truth in lending disclosure with the amount of the home i plan to purchase. The payments and intrest rate. What does this mean? Have I been approved because last I heard it was still in underwritting. Is it still in underwritting even if i got this package? Anyone shed some light on this for me? Thanks!!
new truth in lending laws require re-disclosure any time the rate or fees change by more than .125%
Your loan officer should be able to tell you but it doesn't sound like your final paperwork. You'll know when that happens because you will sign that paper that says "I promise to pay".
Posted on: 05th Nov, 2009 04:18 pm
It is not a loan approval.
Posted on: 05th Nov, 2009 05:58 pm
So then my loan can still be declined? That sucks because I got my hopes up hah. Why does it show amount financed and when the payment first begings and ends?whats that all about. Does that mean it is still with the underwriter??
Posted on: 05th Nov, 2009 07:02 pm
Hi svromeo,

The papers you have gotten do not seem to be final mortgage paperwork. You will be required to sign the final mortgage documents at closing. Your loan application is still being considered. But since they have sent you the paperwork with the details of the loan, it seems unlikely that you will be denied the mortgage. Unless things change dramatically in near future, you can expect to get the loan. However, it is best to talk with your loan officer to know about the status of your mortgage application.
Posted on: 05th Nov, 2009 10:30 pm
You likely received an initial TIL form at application. Did you listen when the LO went over these numbers? The TIL forms do not, repeat not, show the interest rate or the loan amount; on the initial TIL form, the starting month is a best guess based on anticipated closing date.

What you interrupt as the is the Annual Percentage Rate (APR). Similarly when you think is the is the Amount Financed. Both of these items are clearly marked on the form. The figures shown in the payment schedule are numbers but exclude tax and insurance escrow amounts. The TIL is a very good synopsis of the salient features of your loan and the APR is important. Basically it is an internal rate of return calculation of the payment amounts against the Amount Financed. If you slept through that day in math class, think of the amounts shown as a theoretical phantom loan. Actual calculation must be done through convergence but you can the APR by going to one of those handy payment calculators on the Internet and use the APR as the interest rate and Amount Financed for the loan amount and arrive at the actual P&I on your loan. Mortgage insurance, if any, adds another twist and you w be able to use the simplified calculators shown on most Internet sites.
Posted on: 07th Nov, 2009 03:23 am
Ops, omitted explanation of Amount Financed. It is the actual loan amount less prepaid finance charges which are typically identified by "tick marks" and/or listed on a second page of the GFE.
Posted on: 07th Nov, 2009 04:24 am
so what does all this mean? because the appraisal has already been done and everything? Is this a good thing? Does it mean I may be approved or can I still be declined? I am suppose to do the final walk through wed. and the closing is scheduled for thursday. I just dont want to find out last minute the loan isnt approved. So if someone could please help me to understand. If I wasnt going to be approved would it make since for the lender to still want to appraisal? I just want to know I am ok and can start packing!!
Posted on: 07th Nov, 2009 10:23 am
oh boy....why dont you call your loan officer? We are all guessing here based upon the info you have given us.
Posted on: 08th Nov, 2009 05:52 pm
What ever happened after you received your TIL, were you approved for the loan?
Posted on: 06th Mar, 2010 09:08 am
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