As discussed last week, step one in preparing for the mortgage deluge that borrowers face at the closing is to identify the junk documents that can be signed quickly and set aside. That cuts the document pile roughly in half.
Step two is to read the "educational documents" that contain information that borrowers should know before starting the mortgage process. In doing the research for these articles, I was pleasantly surprised to find that some documents, while clearly designed to comply with the law and/or limit lender liability, also contained answers to many questions that I continually receive from borrowers. These documents should be read well in advance of closing.
I will comment on only two educational documents; the others will be found on the Web version of this article at www.mtgprofessor.com.
Notice of no oral agreements: This document requires the borrower to acknowledge that the deal with the lender is wholly governed by the written agreements. The borrower cannot come back later and claim that "The loan officer told me …" If what the loan officer said is not in the documents, it has no force.