Home Loan Document signing
I was obtaining a pre-qualification for a home loan, and was asked to sign the:
Rate Lock Agreement, Disclosure Notices, Servicing Disclosure Statement, Right to Receive Copy of Appraisal, Appraisal Delivery Timing Waiver, GFE Acknowledgment, Notice of Intent to Proceed, Flood Insurance Determination, Certification and Authorization, Transcript of Tax Return, Insurance Disclosure, Truth in Lending Disclosure, GFE, Housing Counseling Agencies Notice, Uniform Residential Loan Application.
Should I sign these documents? I don't have a property picked out yet.
Those are pretty standard docs, but if you don't have a property picked out yet, I'm not sure why you would lock in a rate (re: rate lock agreement). There's a product out there that lets you "lock and shop" where you can lock in a rate without having a property picked out, but it doesn't seem reasonable for an investor.
Without an a dress for a subject property for the loan, you do not trigger the requirement for the lender to issue you the initial disclosures. Until you have all the elements necessary for a complete loan application, these disclosures are meaningless in light of the new TRID requirements which went into effect on October 3, 2015. For instance, there is no longer a GFE used in residential mortgages. So, I would not sign these. I would advise the lender that when you are in contract on a property, they can then begin the origination process of the loan.
Originally posted by @Charlie Fitzgerald:
Without an a dress for a subject property for the loan, you do not trigger the requirement for the lender to issue you the initial disclosures. Until you have all the elements necessary for a complete loan application, these disclosures are meaningless in light of the new TRID requirements which went into effect on October 3, 2015. For instance, there is no longer a GFE used in residential mortgages. So, I would not sign these. I would advise the lender that when you are in contract on a property, they can then begin the origination process of the loan.
The loan provider indicated that the initial disclosures are required to be signed up front. That it is a federal guideline. The document includes an intent to proceed so they can move further into underwriting. It is not a commitment to lend or binding in any way.
It sounds like they are trying to speed up the process, but your comments indicate I should just wait until I have an accepted offer. So why would they provide these documents to me now for signing?
They cannot start a loan on a TBD (to be determined) property, and with no purchase contract. So the cart is way before the horse. Initial disclosures must be generated within 72 hours of a lender receiving a full loan application. This would include an address.
I'll see what the lender has to say. Seems they are jumping the gun to try and get my business. Even before I am ready.