Lender’s Package

Loan Estimate (LE) – Effective October 3, 2015, the Loan Estimate (LE) will replace the old Good Faith Estimate (GFE) and the early Truth In Lending Disclosure (TIL.) The LE is a three page written estimate provided by the lender of all charges – including closing costs and pre-paid and escrowed items – which you are likely to pay at closing. You should receive the LE within three business days of making your loan application and no later than the seventh business day before closing. Click here for sample LE.

Good Faith Estimate (GFE) Applicable to loans applied BEFORE October 3, 2015. A written estimate provided by the lender of all charges – including closing costs and pre-paid and escrowed items – which you are likely to pay at closing. You should receive this within three days of submitting your loan application. RECS provides real time quotes to lenders for the purposes of generating their GFE’s at time of the loan application and we guarantee fees will not exceed the quote! All of our customers like that! Click here for sample GFE.

Truth In Lending (TIL) Applicable to loans applied for BEFORE October 3, 2015. Your TIL will state your Average Percentage Rate or APR. The APR is always higher than the loan’s interest rate because it reflects the entire cost of financing our loan. The APR factors in all your related expenses (closing costs plus interest) and restates it in an adjusted combined interest rate format. Click here for sample TIL.

Promissory Note/Loan – This is your promise to pay back a specific amount of money over a stated period of time with interest. This document is the primary evidence of your debt.

Mortgage – The difference in terminology between a Mortgage and a “Mortgage” or Promissory Note or Loan is very confusing to most. The Mortgage is the instrument that pledges the property as security (collateral) for a debt. The Mortgage document allows the lender to take possession of the property if the borrow fails to pay off the promissory note or loan. To add to the confusion, in many states outside of Florida this mortgage/collateral document is referred to as the “Deed of Trust.”

Mortgagee – The lender.

Mortgagor – The borrower.

Closing Documents

HUD-1 Closing StatementBIG CHANGE! The HUD-1 Closing Statement will not longer be used on all new consumer financed real estate transactions after October 3, 2015. The new Closing Disclosure Form (CDF) will replace the HUD-1 Closing Statement and is explained below.  We have retained this reference section for the HUD-1 Closing Statement because the form  may still be used going forward on these types of transactions: home-equity lines of credit, reverse mortgages, mortgages secured by a mobile home or dwelling not attached to land, commercial loans and loans made by a creditor who makes five or fewer mortgages in a year.

The HUD-1 Closing Statement provides a detailed and itemized breakdown of all costs and disbursements associated with the sale or refinancing of the property. This document is really the heart of the fiduciary responsibility that is provided by a title and closing company. As your title company we have the responsibility to insure the integrity of the transaction by accurately tracking and reporting all funds and charges tied to the transaction. Our fiduciary responsibility expands to ALL parties in the transaction…not only protecting the buyers and sellers interests, but closing within the terms of the lender’s instructions and sales contract. Click here for sample HUD-1 Closing Statement.

Closing Disclosure Form (CDF) – Effective October 3, 2015, the Closing Disclosure Form (CDF) replaces and integrated the Truth In Lending (TIL), Good Faith Estimate (GFE) and HUD-1 Closing Statement. The CDF is a five page written document that summarizes the entire financed real estate transaction. Page 1 covers general information, loan terms, projected payments and costs of closing; Page 2 covers loan costs and other costs; Page 3 calculates your cash to close; Page 4 provides additional information about the loan and Page 5 includes other loan calculations, other disclosures and all parties licensing and contact information.

ANOTHER BIG CHANGE! The CDF MUST be delivered to the buyer/borrow Three (3) business days before closing. A business day here is defined as everyday but Sunday and federal holidays. This rule is a hard and fast. If  timely disclosure can not be documented by the lender, the transaction will NOT CLOSE on the assigned date.  Please see our “Realtor Services” section for a list of best practices to ensure everyone understands the new timelines, requirements and critical dates to ensure a timely closing.Click here for sample CDF.