Loan Packaging & Lender Disclosures

Documents We Send You

We will send you a variety different types of a documents via email during the loan packing stage.

1. Credit Inquiry Letter

The credit inquires letter outlines your recent credit inquiries and asks for an explanation of each. An “I don’t know” answer doesn’t quite cut it. Each inquiry requires a comment as to whether new credit was open or not as a result of the inquiry. This accounts for all  liabilities, even recently open credit accounts that don’t appear on a credit report.

2. Lenders Disclosures

The lenders disclosures have two parts. The first part consists of 25 to 30 electronically sign-able pages. The second part will probably be 6 pages that required “wet” signatures. This means you will need to print these documents, sign them, and return them via fax, email, upload, mail, etc..

Within 48 hours of the loan structure’s near completion, the CMG Disclosure team will email you the electronic loan package. We say “nearly finalized” because the loan structure doesn’t have to be perfect. Certainly we need the program type, income, liabilities, etc. to be accurate but you don’t need to lock an interest rate. When you lock the rate depends on a number of factors, such as the market, loan purpose, etc.. As a result, you may not lock the rate during the loan packaging process.

Disclosure Highlights

The home loan disclosures will contain a variety of documents but the main ones that warrant attention are the Loan Estimate and the Loan Application.

Loan Estimate (a.k.a. the “LE”) – The Loan Estimate (LE) outlines the rate, the costs, and the terms of the loan. Please know that the majority of the costs shown are still estimates and are subject to change. FYI: the Loan Estimate (LE) looks like the closing disclosure (CD) statement that you will sign at closing.

Loan Application – The loan application is the four-page document that contains the information you provided to us for the pre-approval. Please review it for accuracy and call us immediately if there is incorrect or missing information. The conditional approval issued depends on the application’s information, so make sure it’s completely correct.

Miscellaneous Disclosures – Many of the documents in the loan disclosures are permission slips that allow us to act on your behalf. Third parties, like the IRS, your Insurance Agent, etc. need your consent to share your information with us. The rest of the documents outline the process and set expectations for all parties to be honest and transparent.

3. Counseling Letter (if applicable)

Some loan programs require home buyer counseling before closing. The letter is a generic document that outlines details of where someone can locate a home counselor should they choose to do so.

4. Gift Letter (if applicable)

A gift letter will be required if gift funds are being provided. In other words, documentation must be provided for money gifted from someone that is not party to the loan.