Truth in Lending

• This document must be disclosed to the borrower after he or she files an application. The Truth in Lending describes the following: what documents must be presented to the lender to complete the mortgage; the next steps a borrower must take to continue the mortgage process (usually providing the necessary documents); a breakdown of the interest rate offered (both Annual Percentage Rate [APR] and contract rate); and payments and length of time required to pay off the proposed loan.
  
  

Good Faith Estimate

• This document also is required at application. The Good Faith Estimate (GFE) breaks down all fees that will be charged on the loan if the terms remain the same at time of application. The GFE must be disclosed when the terms of the loan change (change in amount borrowed, change in income, change in value of home). The most important part of the GFE is the line that discloses the origination fee (or "points") as this may be the highest dollar value.
  
  

HUD 1-A

• This is a document presented to the borrower at closing. On the HUD, the borrower will be able to review ALL charges passed on to him or her, all charges incorporated into the loan (financed), and all charges covered by the lender. The document is easy to read, as the charges passed to the consumer are listed on one side of the document and clearly differentiated from the other side that breaks down lender-paid costs.
  
  

Mortgage Document

• This form is also disclosed at closing. This is the document that will be recorded in the Registry of Deeds and will represent the lien against the property. On this document, the final principal balance of the loan will be listed, as will the expiration date of the loan and the date the loan is funded. All vested owners on the property must sign this document.
  
  

Riders

• There are several varieties of riders, including prepayment penalty riders, arbitration riders and adjustable rate riders. These documents must be disclosed if a loan has any particular feature deemed to be worthy of full disclosure. For example, a prepayment penalty locks a consumer into a loan for a determined amount of time; thus, the federal government requires this to be disclosed to the consumer.