A truth in lending disclosure statement, or “TIL,” is a document that lenders are required to provide to all loan applicants. It discloses all costs associated with making and closing a mortgage. Within three days of submitting your mortgage application, you will received a TIL statement to review. Your final TIL statement must be prepared and available to you three days prior to closing your new Kansas City home loan.
TIL disclosures for Kansas City home loans protect consumers by:
Unlike a good faith estimate which discloses the cost of the entire transaction, a TIL statement only presents the cost of the loan. Your final TIL statement will include five primary sections:
Your APR, or the cost of your credit for your Kansas City home loan, is calculated as a percentage. The final percentage includes:
Your finance charge is the total amount of interest incurred over the loan’s lifetime. In addition, it includes any prepaid finance charges and mortgage insurance premiums.
The amount financed is the amount of credit provided to you by your lender. This amount excludes any prepaid finance charges.
A payment schedule outlines your loan term and any special features of your Kansas City home loan, including:
Total payment is the amount of money that will be paid at the end of the loan term if every payment is made on time.
Before signing your final TIL statement, make sure to look over all details and compare it to the initial statement. This will help you find any major discrepancies or differences.
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