Initial disclosures

Initial disclosures are the preliminary disclosures that must be acknowledged and signed in order to move forward with your loan application. These disclosures outline the initial terms of the mortgage application and also include federal and state required mortgage disclosures.

The most important items to keep in mind are the mortgage loan application, loan estimate, and program-specific disclosures. When you apply for a mortgage loan, the lender is required to provide you with initial disclosures within three business days of application. Initial disclosures let you know what you can expect in terms of cost, monthly payments, and loan structure. While these terms are not final, they generally will not increase unless there is a legitimate change in circumstance.

What is considered a change in circumstance?

The loan process, between application and closing, takes time. It’s likely that there will be changes along the way, and some changes may require First Tech to re-disclose. These changes could be things such as the appraised value of your home coming in higher or lower than expected, a change in your income or credit, or any other item that would be related to finances. If any changes during your loan process result in a different loan cost, First Tech will disclose the updated terms within three business days.