Page 1 of 2 State of California Department of Real Estate Providing Service, Protecting You Mortgage Loan Disclosure Statement R Form

Understanding the California Mortgage Loan Disclosure Statement

The California mortgage loan disclosure statement, known as the RE 883, is a crucial document that provides borrowers with essential information about their mortgage loans. This form is designed to protect consumers by ensuring they have a clear understanding of the terms and conditions associated with their loan. It includes details such as the loan amount, interest rates, and any fees that may apply, allowing borrowers to make informed decisions.

Steps to Complete the California Mortgage Loan Disclosure Statement

Completing the California mortgage loan disclosure statement involves several key steps:

1. Gather necessary information, including personal identification and financial details.
2. Fill out the form accurately, ensuring all sections are completed as required.
3. Review the completed statement for any errors or omissions.
4. Submit the form to the appropriate lender or financial institution.

Following these steps helps ensure that the disclosure statement is filled out correctly, minimizing the risk of delays in the loan process.

Key Elements of the California Mortgage Loan Disclosure Statement

The RE 883 includes several key elements that borrowers should pay close attention to:

• Loan Amount: The total amount being borrowed.
• Interest Rate: The rate at which interest will accrue on the loan.
• Fees: Any additional costs associated with the loan, such as origination fees or closing costs.
• Loan Term: The duration over which the loan will be repaid.
• Monthly Payments: The amount that will be due each month.

Understanding these elements is vital for borrowers to assess their financial obligations and make informed choices.

Legal Use of the California Mortgage Loan Disclosure Statement

The California mortgage loan disclosure statement serves a legal purpose by ensuring compliance with state and federal regulations. Lenders are required to provide this document to borrowers as part of the loan application process. This requirement helps protect consumers by ensuring they are aware of their rights and responsibilities before entering into a mortgage agreement.

Obtaining the California Mortgage Loan Disclosure Statement

Borrowers can obtain the California mortgage loan disclosure statement through their lender or financial institution. It is typically provided during the initial stages of the loan application process. Additionally, the form may be available in a fillable format online, allowing for easier completion and submission.

Digital vs. Paper Version of the California Mortgage Loan Disclosure Statement

Both digital and paper versions of the California mortgage loan disclosure statement are acceptable. The digital format offers convenience, allowing for easier editing and submission. Many lenders now provide options for electronic signatures, streamlining the process further. However, some borrowers may prefer the traditional paper version for their records. Regardless of the format, it is essential to ensure that all information is accurate and complete.