What is the “truth-in-lending statement?
If you’re hunting for a mortgage, no doubt you’ve heard this phrase come up frequently. This statement gives you the entire list of costs that you will have to pay (loan origination fee, discount fees, and prepaid interest), along with the actual figures of the carrying the loan. These figures are entered into a computer to figure out the annual percentage rate (APR). The end result is a statement that shows you the true cost amortized (see Glossary) over the term of the mortgage. • I am self-employed. What documentation do I need to get a mortgage? You will need to show the following: Two years personal income tax returns, two years business income tax returns (if you are incorporated), a current balance sheet, a current profit and loss statement, a business credit report, and a personal credit report. Some lenders may ask for a list of documents. Just be patient and show everything needed. • Should I pay off my bills before buying a home? No, do not deplete your cash reserves, becaus
