The closing disclosure form is a 5-page document which a lender will provide a borrower that details the terms of a mortgage.
The lender must deliver it to the borrower at least 3 business days before closing a mortgage.
It is somewhat an extended version of the loan estimate form which is given to a borrower within 3 days of loan application.
Predatory lending refers to lenders who operate with questionable practices to take advantage of gullible unsuspecting borrowers.
While any form of sales tactics meant to trick borrowers into signing up for loans which they would otherwise not sign up with, the financial catastrophe of 2008 resulted with the term predatory lending being mainly associated with sub-prime mortgage lenders.
During the period of time leading up to 2008, misinformed and unsophisticated borrowers took on loans which they cannot afford to purchase houses by the masses.
An agreement of sale is a contract between buyer and seller of a property stating the terms and conditions of the transaction.
Sometimes also referred to as the sales and purchase agreement or the sales agreement, this document should contain material information including:
It is a bilateral two-way agreement whereby the buyer is obligated to buy and the seller obligated to sell.
Even in this modern day and age, a disturbingly high number of property buyers don’t get pre-approved for their mortgages before buying or searching for a house.
This is either due to pure confidence because the buyer is 100% certain that he would obtain a loan amount he desires, or pure ignorance.
I accept that there is also a group of homebuyers who simply don’t know that there is such a thing as obtaining pre-approval.