With the subprime mortgage mess and congress about to pass HR 3915 maybe this simple form( download and print the form here ).could've helped avoid some of the malaise.
When you get a mortgage loan, you sign a ton of documents--good-faith estimates, a truth-in-lending statements, settlement statements, and more. You'll sign other documents to protect the lender against future claims that you didn't fully understand the terms and conditions of the loan.
Worse yet, you'll be asked to sign a power of attorney authorizing the lender to make corrections should errors be found later. One of the reasons people get taken on mortgage loans is because the paperwork is so fouled up.
American Enterprise Institute came up with this form that they'd like mortgage lenders to use, but instead, YOU should use it. There are a series of simple fill in the blank questions that you should require the lender to provide to you, then you'll know exactly what your loan is. And it's very easy for anyone to follow, even for first time home buyers. And if you're not familiar with mortgage terminology, here's a clear definitions of terms, stating the essentials of the loan in simple English.