After consumers complete the loan application and have chosen a loan type, the lender provides several documents to borrowers that disclose important aspects of the loan. These documents are provided within 3 days of receipt of the application and are required by Federal Regulation. The documents are:

Estimated Closing Cost Statement: Lenders provide an estimate of the closing costs incidental to obtaining a loan. Some of these costs are:

1. Loan origination fees: the cost to obtain the loan paid to the originating lender or broker.
2. Loan discount/ premium fees: paid to or received from the secondary market investor depending upon the interest rate.
3. Processing, underwriting, and document fees: some lenders charge for their services associated with making the loan.
4. Appraisal and credit report fees: These fees are generally collected by the lender and paid to outside companies performing the services.
5. Title, escrow, and closing agent fees: These companies charge various fees for their services.
6. Private Mortgage Insurance: Generally, the first year premium is paid in advance.
7. Property and Hazard Insurance: All or a portion of these may be required to be paid.
8. Prepaid Interest: Depending upon the time of the month the loan closes, interest may be prepaid.
9. Incidental recording, delivery, wire, etc. fees: These fees are all normal fees charged to the consumer.

Truth in Lending Statement - Regulation Z: This statement shows annual percentage rate (APR) on the loan. This rate combines the actual interest paid on the note rate over the life of the loan plus the total costs to obtain the loan. The APR is a measure of the cost of credit expressed as a yearly rate of interest. Because all lenders follow the same rules in calculating the APR, it provides consumers with a good basis for comparing the cost of mortgages.

Settlement Cost, A HUD Guide: This booklet gives an overview of the lending process and is required by HUD. The booklet is provided to consumers after the loan application is completed.

Consumer handbook on ARMs: This booklet gives an overview of ARMs.

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