What is a Loan Package?
A loan package is a combination of a loan application and loan disclosures. A Universal Residential Loan Application, also known as a Fannie Mae Form 1003, is a four page legal document completed when requesting a mortgage loan. The disclosures are eleven other pages that contain information that is useful to the borrower and protect the Lender. The content in this package is critical in the loan process and is ultimately the reflection of the entire loan.
Page 1 - Borrower Information, Employment Information, Residential Information, Type of Loan, Property Information and Purpose of Loan.
Page 2 - Borrower Income and Housing Expenses, and details in Assets and Liabilities.
Page 3 – Complete description of Real Estate Owned, Details of Transaction for the Good Faith Estimate, and declarations and other information for government monitoring purposes.
Page 4 – Continuation Page, for overflowing information on the first three pages.
Good Faith Estimate – Discloses details of the loan such as rate, term, loan amount, and estimated proposed payment to the borrower and must be reviewed within 3 days of taking the four-page application. Good Faith also discloses the estimated closing costs of the loan requested. Accurate closing cost fees will be gathered and re-disclosed closer to the loan closing.
Truth-In-Lending – Prevents predatory lending by disclosing the worst case payment scenario and cost of credit to the borrower.
Other Disclosures – In accordance with RESPA, Real Estate Settlement Procedures Act, and specific state requirements to protect the borrower, the broker, and the lender by disclosing useful information. These disclosures are to be signed and returned before the loan is submitted to final underwriting; some are pertaining to credit scores, flood and hazard insurance, and right to receive the appraisal.
How and when do I get the Loan Package? See Example.
The loan package typically comes via email after the loan details are finalized, for example, the construction loan budget is put together, the appraisal is in, and all assets and credit questions have been gathered and answered. If email is inconvenient, we can send the loan package via overnight mail directly to your home or place of work.
Who do I need to talk to if I have questions about the Loan Package?
The National Consultant or your assigned Transaction Coordinator will be able to help answer your questions about the loan package or make any necessary changes for you.
Who sees this Information?
Your Transaction Coordinator is solely responsible for the information that is put into the loan origination software, Calyx Point, which then exports into the loan package. The National Consultant also has access to review the information in the software. The final paper copy is ultimately reviewed by the Loan Underwriter who deciphers through the specifics and decides to grant the loan approval or deny it.
Go to top
Construction Loan Specialists
