2006 Code of Virginia § 6.1-2.9:5 - Disclosure of terms of mortgage application

6.1-2.9:5. Disclosure of terms of mortgage application.

Any lender or broker making or arranging loans secured by first mortgages ordeeds of trust on owner occupied residential real estate, consisting of oneto four family dwelling units, other than a lender making ten or less loansin any twelve-month period, shall provide, at the time an application forsuch a loan is submitted by a potential borrower, to the applicant-borrower awritten statement:

1. Describing when, if ever, the interest, points and fees quoted will belocked in;

2. To be initialed by the applicant-borrower and lender or broker, statingthat all the loan terms not legally locked in are subject to change untilsettlement; and

3. Providing a good faith estimate of the processing time required for theloan. The estimate shall take into account the time needed for theperformance of any local government inspections or other functions necessaryto close the loan.

(1988, c. 311.)