Mortgage Disclosures FAQs

Disclosures are standardized forms that outline the terms of your loan, your rights during the loan process, and federal and state requirements. You will receive disclosures from Salmon Bay throughout the entire transaction. Disclosures are sent at major events during the loan, as well as when there are changes. They are required by law.

We have addressed common disclosure questions here. If you need more information, please contact your loan officer or our office at (206) 789-8629.

I just got an email from somebody on behalf of my loan officer, telling me to login and sign my disclosures. What?

You just received your disclosures electronically! Technology has allowed us to send you a very large stack of documents for you to sign electronically rather than by hand. We are required by law to mail disclosures within three business days of receipt of a loan application or purchase and sale agreement (unless the application is withdrawn during that time). The forms vary depending on the type of loan for which you are applying. Please review, sign and click submit on the disclosures – we do need these back to move forward with your loan. If you have any questions about them, please don’t hesitate to reach out.

I already signed a bunch of disclosures. Why am I getting more?

When important changes are made to a loan, such as the rate, fees, or term, we are required to send forms disclosing the details of these updates.

What is the Uniform Residential Loan Application?

This is a standardized residential mortgage loan application used by lenders to collect a borrower’s financial information. It is also referred to as Form 1003.

I found some errors on the application. What do I do?

If you’re reviewing a paper copy, please handwrite in the correct information. If you’re signing a digital version, please send us the corrections! You’ll sign a final version of this form at closing so it’s okay to mark this one up.

What work phone number should I use?

Ideally, the phone number you provide will go directly to someone who can verify your employment. The lender will call several times to confirm that you are still employed and that the start date you listed is accurate.

I split my rent with roommates. Should I list my portion of the rent or the total amount?

For simplicity’s sake, list the full amount and let your loan officer know if you are only responsible for a portion.

I don’t want to liquidate all my savings for this purchase. Why are they listed?

The more assets you have, the stronger your application and the more confident the lender. Confident lenders tend to be more generous lenders, and we like that.

My investment accounts are much higher than what is listed. Why?

Lenders are well aware that limits and tax restrictions often constrain the liquidity of retirement funds. For that reason, we often cannot count the entire value of the investment, and instead are only able to count certain percentages. These percentages vary based on the investment.

The credit card balances listed are old. Should I update them?

These figures are automatically posted from your credit report, which always lists figures that are one or two months old. In most cases, it doesn’t matter and you can leave it as is. If something looks way off, tell your loan officer.

I receive higher rent on my investment property than what is listed. Why?

We can only use 75% of the rent received to account for a 25% vacancy factor.

What are the Details of Transaction?

This is a generalized summary of funds within the transaction. It may include figures that are paid for by the seller so it is helpful to review exact numbers and clarify your responsibility with your loan officer.

A box is incorrectly checked in the Declarations section. What should I do?

Mark the loan application correctly and notify your loan officer immediately.

What’s all the fine print in section IX?

The first paragraph is basically an 11-part acknowledgment of your character and intentions: that you did not lie, will pay your mortgage, won’t run drugs out of the house, etc. The second paragraph is an information release that allows us to gather confidential information from employers and banks. The third paragraph says you have a right to receive a copy of the appraisal.

Why do I need to identify my race/ethnicity? Do I get a benefit for being a minority?

Lenders are not allowed to discriminate based on demographics. This information is used to monitor patterns of loan approvals and crack down on discrimination. Your answer does not affect your loan. If you check “I do not wish to furnish this information,” your loan officer is required to guess.

My rate is locked but it says it’s not guaranteed by SBCL. Why?

The lender guarantees the lock, not SBCL. If you have received this disclosure asking you to acknowledge that your rate is locked, then it is locked.

What is the Privacy Disclosure?

The Privacy Disclosure states that we keep all of your information safe and confidential and only share information as required to process the loan or in the event of a legal action. Much of the information regarding the transaction becomes public record so you’ll likely get junk mail no matter what.

What is Form 4506T?

Form 4506T is used by lenders to verify that the income listed on the loan application matches IRS tax records. Please verify that your name and address are the same as listed on your tax return.

What is the FHA Amendatory Clause?

The FHA Amendatory Clause is a required document stating that you (the buyer) and the seller agree on the sales price and that the appraisal is to determine the loan rather than purchase amount. By signing the Real Estate Certification, you are certifying that you are involved in a sales transaction and that all terms of the transaction are true. Sign the top two lines of each section and return the form to us with the rest of your disclosures. We will collect all other signatures.

What is the FHA Identity of Interest?

An Identity of Interest is also known as a Non-Arm’s Length Transaction. Lenders use it to determine if the buyer and seller are related or business partners. If you indicate “yes,” many more guidelines and restrictions apply. If this situation applies to you, call your loan officer immediately to discuss. Otherwise, check “no.”

What is Informed Consumer Choice?

This form compares FHA financing with conventional financing. It shows how a $100,000 loan looks with a 3.5% (FHA minimum) vs. 5% (conventional minimum) down payment. It is for information purposes only and has no bearing on your actual loan.