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You may have read the “full disclosure” phrase in many of your business documents and transactions, but do you know what it really means? As a buyer, how does the concept of full disclosure affect your purchase? Our experts at Altius Mortgage Group weigh in on the topic in an effort to walk you through it.

The Importance of “Full Disclosure” Clause

Many real estate transactions contain the “full disclosure” requirement. It means revealing every material issue that the other party must learn about the transaction. The material issues that require full disclosure are those that may affect whether the client decides to push through with the deal or not. It aims to bring into light everything that could change, clash and affect the contract you are signing.

In most states, real estate agents and brokers need to sign a full disclosure form under the penalty of perjury, in which there may be sanctions to the party who failed to follow the agreement.

Typical Materials to be Disclosed

Real estate agents, brokers and sellers follow the disclosure agreements in service to the buyer.  Each state has different regulations on what can be disclosed or not, but in general, full disclosure means revealing property defects and property history. All parties must follow the regulation to avoid any fraud lawsuits.

To qualify for mortgage, the applicants must submit the ‘Truth in Lending’ disclosure, which — according to legal definitions — is a federal law requiring lenders to disclose the true cost of credit transactions by providing certain information to borrowers, including the terms of interest rate, loan, and the amount, number and due dates of all payments necessary to pay off the loan.

As mentioned earlier, every state has some modifications on full disclosure requirements and Utah has the same, too. Find out how our services can help you get pre-qualified for your mortgage loans, and purchase or refinance your home. Talk to our specialists here at Altius Mortgage Group and make your transactions as seamless as possible.

September 14, 2015

Understanding the Full Disclosure Clause & Its Implications

You may have read the “full disclosure” phrase in many of your business documents and transactions, but do you know what it really means? As a buyer, how does the concept of full disclosure affect your purchase? Our experts at Altius Mortgage Group weigh in on the topic in an Read More
September 10, 2015

It’s Not Crazy to Get a Big, Long Mortgage

Anything big and long outside mortgage is good, excellent even. But when it finally involves money, a big, long mortgage is taboo. After all, who would want to pay seemingly endless monthly amortizations? Nevertheless, don’t always throw away the chance to get a big, long mortgage. It might be the Read More
September 9, 2015

When and How to Get Prequalified for a Mortgage

When your search for a new home transitions from casually browsing through available listings on a local real estate agent’s website to actually reviewing and visiting open houses, it’s time to start thinking about getting preapproved for a mortgage. The prequalification process is really very simple, but most homeowners don’t Read More
August 18, 2015

The Consequence of a Bad Debt

Despite the seemingly promising upstream motion of economics in recent years, the number of people with less-than-perfect credit histories is still steady. We deduce it has more to do with proper information and literacy when it comes to finance driving consumers into sinkholes and trapdoors. Nowadays, mortgage companies are becoming Read More
August 17, 2015

4 Factors That Slow Down your Loan Processes

Surviving the real estate market is like getting into a competitive sport that requires extra effort and cash. You crave your dream house but the necessity of requirements prevents you from achieving it instantly. In order to buy your new home, you’ll need the help of a trusted home loan Read More