Truth in Lending Statement

Many borrowers may be new to the mortgage industry and hear about the different disclosures and forms affiliated with a mortgage loan but may not know what they actually are and why they are provided. One of the most important documents provided for a borrower is called the TIL, Truth in Lending Disclosure. The initial form of this two page disclosure is required to be given to the borrower within three business days of the application and then an additional final form of the disclosure is given at closing. The main purpose of the TIL is to disclose the cost of the credit in the form of a finance charge and APR, annual percentage rate. This disclosure is also very important for the borrower as it will show any prepayment penalties they could incur from their loan. Want to learn more about mortgage disclosures and what their purposes are? Click HERE and contact a local branch manager to become more educated on mortgage financing.