Home Improvement Checklist
(To be complete at receipt of application)
Account Number:
Applicant’s Name:
Joint Applicant’s Name:
Home Number:
Work Number:
Cell Number:
O
N
L
Email address:
Property Address:
SE
Home Improvement Application
Operator:
Branch Number:
IC
No Early Start Acknowledgement:
O
FF
Construction Notice:
Servicing Disclosure:
R
Right to Receive Copy of Appraisal:
F
Copies to Member:
Term of Loan:
Interest Rate:
Total Loan Amount:
Date Application Received at Branch
Comments:
E
U
Application:
JSC Federal Credit Union
Home Improvement Loan Application Cover Sheet
The following documents should be submitted at time of application:






Completed and signed application (If married both spouses need to sign)
Proof of Income (W2s, check stubs, or two years of tax returns for self employed applicants)
Proof of Hazard Insurance and Proof of Flood/Wind Insurance if applicable
Copy of the Deed of Trust to the property
Statement from mortgage company showing current balance
Bid from your contractor
Additional Considerations:



Property must be located in Harris or adjacent counties.
There may only be one lien on a Homestead, be it a 1st Mortgage or a Home Equity.
Loan must be approved and processed before construction begins.
 A Formal Appraisal maybe required, if so your loan officer will order this from a credit
union approved appraiser.
Home Improvement Worksheet
Appraised value of your home
Multiplied by 90% (x 0.90)
Subtract any Liens (such as 1st Mortgage or Home Equity Loans)
Equals the amount you my qualify to borrow
x
=
Example: Home with a $100k value, with $50k left of mortgage
100k x .9 (90%) = 90k – 50k = $40k (available to borrow)
Upon request, the Credit Union will provide you a copy of the appraisal used to determine the value of
the collateral securing your real estate loan.
For questions or help please call (281)488·7070 or (800)940·0708
Please request to speak with one of the following:
Robin Pavalonis ext. 1143
Melinda Smith ext. 1160
Stacey Horton ext. 1145
1330 GEMINI · P.O. BOX 58346 · HOUSTON, TEXAS 77258 ·
(281)488-7070 www.jscfcu.org
Dear Member,
The following is a general outline of the procedure the Credit Union will follow in processing your loan. This process is
designed to be as efficient as possible considering the many federal and state regulations governing this loan product.
Application:
To correctly submit an application, you will need to provide the Credit Union a signed original of the following:
(Provided in application package)
A. Application
B. No Early Start Acknowledgement
C. Construction Notice
D. Right to Receive Copy of Appraisal
E. Servicing Disclosure Statement
To help expedite the process, please provide the following:
A.
B.
C.
D.
Proof of Income
Proof of Homeowners Insurance and Windstorm/Flood Insurance (if applicable)
Deed of Trust
Final bid/contract (provided by a licensed contractor)
Prequalification:
Credit and income are reviewed -can take up to three business days
Once Pre-qualified, we will provide you with a Good Faith Estimate that outlines: rate, term, payment and closing costs.
Preapproval:
If you decide to proceed with the loan, you will sign and return the Good Faith Estimate acceptance letter. We then will
proceed by ordering the following reports on your behalf: (fees apply)
A. Property Report
B. Flood Certification
C. County Tax Appraisal (no charge)
A Formal Appraisal may also be required when:
a) When equity is insufficient
b) At the discretion of the Credit Union
Next, we will send you a second group of disclosures that must be signed and returned. These include:
A. The FACT Act Notice
B. The Standard Flood Hazard Determination Form
C. Truth and Lending Early Disclosure Statement – must be signed by applicant seven business days before closing
D. RESPA Homeownership Counseling Disclosure
Approval:
At this time you will be contacted to set an appointment for closing. The following document must be signed at least 24
hours before closing:
A. Preliminary Settlement Statement (HUD-1A)
B. Deposit/Prepaid Acknowledgment
You will also receive a complete loan package for you to review prior to closing.
Loan Closing:
At this point you and your loan officer have scheduled a closing appointment at a JSC Branch and a time convenient for
you. For documents needing a Contractor’s signature; the contractor may sign anytime between closing and funding. (The
State requires a minimum of 3 days before funding) This is a good time to contact your contractor to make him aware of
your closing date.
Documents that will be provided at your closing appointment:
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
M.
N.
A copy of the Final bid/contract
Note & Truth in Lending Disclosure
Texas Mortgage Fraud Notice
Mechanic’s Lien Contract
Affidavit of Debits and Liens
Document Correction Agreement
Loan Agreement Notice
Disclosure regarding review of loan documents
HUD-1 Settlement Statement (Final)
Letter to the Insurance Company
Supplemental Mortgage Insurance Provision
Notice of Right to Cancel Cover Sheet
Notice of (3 day) Right to Cancel -No funds can be disbursed, nor can work begin until 3 days has passed
Draw Request
For an explanation of these documents please refer to the Explanation of Home Improvement Closing Documents
included with this package.
After Closing:
After your loan closes, you have three business days to cancel your loan application. If after three business days you
still wish to continue with the process you will return to the Credit Union the Statement of Non-cancellation
(provided at closing) indicating that you do not wish to cancel your loan. Loan proceeds cannot be disbursed nor can
work begin prior to the receipt of this notice by the Credit Union and the required three days has elapsed.
Draw Requests:
Draw request are made to loan officer (24hr request is greatly appreciated). Draws are disbursed in the form of a check;
the checks will be made payable to member and the Contractor, but will only be given to member.
If you need further assistance, please contact a mortgage specialist at 281-488-7070.
Robin Pavalonis ext. 1143
Stacey Horton ext. 1145
Melinda Smith ext. 1160
Home Improvement Loan FAQ’s
Definition: A home improvement loan is any dwelling-secured loan to be used, for repairing,
rehabilitating, remodeling, or improving a dwelling or the real property on which the dwelling is
located, and that is to be used for one or more of those purposes and that is classified as a home
improvement loan by the institution.
What is the maximum time that you can finance a Home Improvement loan for?
The maximum term you can finance a Home Improvement loan for is 15 years.
How is the interest rate determined?
The interest rate varies depending upon if the loan will become first or second lien, and how
long the term of the loan is for i.e. 5yr, 10yr, and 15 yr.
How long does the process take to finalize a Home Improvement loan?
Certain time restrictions are mandated by Texas Law, and can not be shortened. The closing of
this loan cannot be scheduled before 7 business days after the Truth and Lending Disclosure has
been signed. Then, an additional 3 business days must pass before funds can be distributed.
The process usually takes between 10 and 15 business days. However, the loan could take longer
due to reasons outside the norm. (e.g., the timing of receipt of signed documents, legal
disposition of the property, unpaid taxes, unreleased lien, timing of formal appraisal or title
commitment)
Is a spouse required to be on the loan?
Texas is a community property state, therefore, a spouse and anyone who is listed on the deed of
trust is required to be a joint applicant and must occupy the property.
Does the property have to be homestead exempt?
Property used to secure a Home Improvement loan must be the borrower's homestead.
What are the closing costs associated with a Home Improvement loan?
The standard cost for closing a Home Equity loan is $203.00-$217.00. The break-down of these
fees are as follows:
 The property report is $140.00.
 Flood certification is $15.00.
 Recording fees $48.00 to $62.00.
 Appraisal
Most often we use the tax appraisal (no cost).However, if a formal appraisal is required
the cost ranges from $425.00- $600.00.
 Title commitment fees (determined by the title company)
How much can be borrowed for a Home Improvement loan?
The amount borrowed for a Home Improvement loan is 90% of the appraised market value
minus any existing liens on the property. For example, on a property with a fair market value of
$100,000, the maximum amount of debt against the property permitted by is $90,000. Assuming
there is an existing debt of $30,000, the maximum amount of the Home Improvement loan can be
is $60,000.
Can an existing appraisal be used to determine property value?
At the discretion of the Credit Union, an existing appraisal may be used, granted it is no older
than one year and was prepared for another lender.
Is there a prepayment penalty on a Home Improvement loan?
No. A lender may not charge a penalty to a borrower for paying all or a portion of an equity
loan early.
Can you do the some of the improvement work your self?
No. All work must be completed by a licensed contractor(s)
How will the Contractor(s) receive payment?
Draw requests are made to the loan officer. (24 hr notice is greatly appreciated) Draws are then
distributed in the form of a check(s). The check(s) will be made payable to the member and the
contractor, but will only given to the member.
Is the contractor required to come in at closing?
No. The contractor is not required to come in at closing. However, a representative for the
contractor will need to come in prior to funding and provide a copy of his/her driver’s license
and business card. Then, the contractor will sign the mechanic’s lien, draw request slips, and
final bid/contract. Per federal regulation, the contractor must pass approval from the Office of
Foreign Access Currency (OFAC). If for some reason the representative does not clear OFAC
the loan cannot be finalized.
Can a home owner have more than one Home Improvement Loan?
Texas Law allows more than one Home Improvement Loan at a time; however JSCFCU will only
hold 1st or 2nd lien Position.
Explanation of Home Improvement Closing Documents
Final Contract with contractor
The member and the contractor will both need to sign the final bid at closing, by
signing they are confirming its accuracy.
Note & Truth-in-Lending Disclosure
This is the first disclosure that will be reviewed at closing. This document is a
review of the monthly payment, APR, Finance Charge, etc.
Texas Mortgage Fraud Notice
This Notice states that the member did not knowing or intentionally give any false
or misleading information in order to obtain this loan. By signing they are stating
that all statements regarding identity, employment, annual income, and property
occupancy are true at the time of closing.
Mechanic’s lien contract
This is the security instrument that is filed with the county to establish JSC
Federal Credit Union’s lien on the borrower’s property. The borrower and the
borrower’s contractor will need to sign this document. The contractor does not
have to be present at the closing but can come in anytime after the member has
closed their loan. When the contractor comes in to sign he will need to present
picture ID and a business card stating his position with the company. You will
need a copy of both to sent back with the loan packet.
Affidavit of Debits and Liens
The borrower is swearing to the best of their knowledge the liens listed on this
form are the only encumbrances on the property.
Document Correction Agreement
This agreement states that the borrower and JSCFCU will comply with any
request to correct any inaccuracy, and or replace any lost documents.
Loan Agreement Notice
The rights and obligations of borrower and lender are determined solely from the written
loan agreement, and any prior oral agreements between borrower and lender are
superseded by loan agreement. This notice pertains to loans in the amount of $50k or
more.
Disclosure regarding review of loan documents
A borrower must receive and review the entire closing packet at least 24 hours
before closing. By signing this document the borrower acknowledging that they
have done so.
HUD-1 Settlement Statement (Final)
This Statement goes over all the closing cost due by the member. This will
contain the charge for a Property Report, Flood Determination, Recoding fees,
and Appraisal if applicable.
Supplemental Mortgage Insurance Provision
The borrower is stating that they will provide the Credit Union with evidence of
insurance and maintain JSCFCU as loss payee. The borrower understands that if
the fail to provide us with acceptable evidence of insurance the lender may
purchase hazard insurance for the Lender’s protection only at the borrower’s
expense.
Right to Cancel Cover Sheet
This letter will accompany the member’s copies of the Notice of Right to Cancel.
This lets the member know what steps need to be taken if they wish to NOT
cancel their loan after their three-day right to cancel.
Right to Cancel
This notice provides the borrower the right to cancel their loan within three
business days after closing. After the three-day right to cancel has expired, the
borrower has the option to cancel the loan or proceed with funding.
Draw Request
On Home Improvement loans the disbursements are taken in “Draws,” usually
which are specified in the final contract with the contractor. The contractor and
the member will need to sign the desired number of draw request to satisfy all
necessary payments.
Home Equity - Home Improvement - Unimproved Property Application
NOTE AND COMPLETE
WISCONSIN RESIDENTS ONLY: (1) No provision of any marital property agreement, unilateral statement under Section 766.59, or count decree under
Section 766.70 will adversely affect the rights of the Credit Union unless the Credit Union is furnished a copy of the agreement, statement or decree, or
has actual knowledge of its terms, before the credit is granted or the account is opened. (2) Please sign if you are not applying for this account or loan
with your spouse. The credit being applied for, if granted, will be incurred in the interest of the marriage or family of the undersigned.
X
DATE
SIGNATURE FOR WISCONSIN RESIDENTS ONLY
Individual Credit: Complete Applicant section. Complete Co-Applicant, Spouse, (referred to as "Other") section: (1) about your spouse if you live in a
community property state (AZ, CA, ID, LA, NM, NV, TX, WA, WI), or (2) if your spouse will use the Account. Please check box to indicate whom
the information is about.
Joint Credit: Each Applicant must individually complete the appropriate section below. If Co-Borrower is spouse of the Applicant, mark the
Co-Applicant box.
Amount Requested $
Purpose:
Type of Loan Request:
Home Equity
Home Improvement
Unimproved Property
APPLICANT
APPLICANT INFORMATION
OTHER
NAME (Last - First - Initial)
DRIVER'S LICENSE NUMBER/STATE
SPOUSE
DRIVER'S LICENSE NUMBER/STATE
BIRTH DATE
ACCOUNT NUMBER
HOME PHONE
CO-APPLICANT
NAME (Last - First - Initial)
SOCIAL SECURITY NUMBER
CELL PHONE
ACCOUNT NUMBER
OWN
RENT
PROPERTY ADDRESS IF DIFFERENT FROM PRESENT ADDRESS
OWN
SOCIAL SECURITY NUMBER
HOME PHONE
BUSINESS PHONE/EXT.
PRESENT ADDRESS (Street - City - State - Zip)
BIRTH DATE
CELL PHONE
BUSINESS PHONE/EXT.
OWN
RENT
LENGTH AT
RESIDENCE
PRESENT ADDRESS (Street - City - State - Zip)
LENGTH AT
RESIDENCE
PROPERTY ADDRESS IF DIFFERENT FROM PRESENT ADDRESS
OWN
RENT
LENGTH AT
RESIDENCE
LENGTH AT
RESIDENCE
RENT
COMPLETE FOR JOINT CREDIT, SECURED CREDIT OR IF YOU LIVE IN A
COMMUNITY PROPERTY STATE:
COMPLETE FOR JOINT CREDIT, SECURED CREDIT OR IF YOU LIVE IN A
COMMUNITY PROPERTY STATE:
MARRIED
SEPARATED
UNMARRIED (Single - Divorced - Widowed)
LIST AGES OF DEPENDENTS NOT LISTED BY OTHER APPLICANT
(Exclude Self)
MARRIED
SEPARATED
UNMARRIED (Single - Divorced - Widowed)
LIST AGES OF DEPENDENTS NOT LISTED BY OTHER APPLICANT
(Exclude Self)
EMPLOYMENT INFORMATION
NAME AND ADDRESS OF EMPLOYER
YOUR TITLE/GRADE
START DATE
NAME AND ADDRESS OF EMPLOYER
YOUR TITLE/GRADE
SUPERVISOR'S NAME
HOURS AT WORK
START DATE
IF SELF EMPLOYED, TYPE OF BUSINESS
HOURS AT WORK
IF SELF EMPLOYED, TYPE OF BUSINESS
IF EMPLOYED IN CURRENT POSITION LESS THAN FIVE YEARS, COMPLETE
PREVIOUS EMPLOYER NAME AND ADDRESS
IF EMPLOYED IN CURRENT POSITION LESS THAN FIVE YEARS, COMPLETE
PREVIOUS EMPLOYER NAME AND ADDRESS
STARTING DATE
SUPERVISOR'S NAME
STARTING DATE
ENDING DATE
MILITARY: IS DUTY STATION TRANSFER EXPECTED DURING NEXT YEAR
YES
ENDING/SEPARATION DATE
WHERE
NO
ENDING DATE
YES
MILITARY: IS DUTY STATION TRANSFER EXPECTED DURING NEXT YEAR
WHERE
ENDING/SEPARATION DATE
NO
INCOME INFORMATION
NOTICE: Alimony, child support, or separate maintenance income need not be revealed if you do not NOTICE: Alimony, child support, or separate maintenance income need not be revealed if you do not
choose to have it considered.
choose to have it considered.
EMPLOYMENT INCOME $
EMPLOYMENT INCOME $
PER
PER
NET
GROSS
NET
GROSS
OTHER INCOME $
PER
OTHER INCOME $
PER
SOURCE
SOURCE
INFORMATION FOR GOVERNMENT MONITORING PURPOSES
The following information is requested by the Federal Government for certain types of loans related to a dwelling in order to monitor the lender's compliance with equal
credit opportunity, fair housing and home mortgage disclosure laws. You are not required to furnish this information, but are encouraged to do so. The law provides that a
lender may not discriminate either on the basis of this information, or on whether you choose to furnish it. If you furnish the information, please provide both ethnicity and
race. For race, you may check more than one designation. If you do not furnish ethnicity, race, or sex, under Federal regulations, this lender is required to note the
information on the basis of visual observation and surname if you have made this application in person. If you do not wish to furnish the information, please check the box
below. (Lender must review the above material to assure that the disclosures satisfy all requirements to which the lender is subject under applicable state law for the
particular type of loan applied for.)
BORROWER
I DO NOT WISH TO FURNISH THIS INFORMATION
Ethnicity:
Hispanic or Latino
Not Hispanic or Lantino
Race:
American Indian or Alaska Native
Asian
Native Hawaiian or Other Pacific Islander
Sex:
Female
Male
CUNA Mutual Group 91, 2003, 08, 12, 13 All Rights Reserved
Black or African American
CO-BORROWER
I DO NOT WISH TO FURNISH THIS INFORMATION
Ethnicity:
Hispanic or Latino
Race:
American Indian or Alaska Native
Not Hispanic or Lantino
Asian
Native Hawaiian or Other Pacific Islander
White
Sex:
Page 1 of 2
Female
Black or African American
White
Male
KTXAH1 (EST519)-e
Check box for Applicant/Other. List all assets and account number(s)-- Attach other sheets if necessary.
ASSETS/PROPERTY
APPLICANT
OTHER (CO-APPLICANT, SPOUSE)
SHARE DRAFT OR
CHECKING AMOUNT
SHARE DRAFT OR
CHECKING AMOUNT
NAME AND ADDRESS OF DEPOSITORY
$
NAME AND ADDRESS OF DEPOSITORY
$
SAVINGS AMOUNT
NAME AND ADDRESS OF DEPOSITORY
SAVINGS AMOUNT
$
NAME AND ADDRESS OF DEPOSITORY
$
APPLICANT
LIST HOME AND ALL OTHER ITEMS YOU OWN AND LOCATION OF PROPERTY
For Example: Auto, Boat, Stocks, Bonds, Cash, Household Goods, Real Estate, etc.
OTHER
HOME*
PLEDGED AS COLLATERAL
FOR ANOTHER LOAN
MARKET VALUE
$
YES
NO
$
YES
NO
$
YES
NO
*LIST EVERY LIEN AGAINST YOUR HOME -- This section must be completed for the property which will be given as security, if applicable.
A lien is a legal claim filed against property as security for payment of a debt. Liens include mortgages, deeds of trust, land contracts, judgments and past due taxes.
FIRST MORTGAGE HELD BY
OTHER LIENS (Describe)
PRESENT BALANCE $
IS THE PROPERTY DESCRIBED IN THIS SECTION:
YOUR PRINCIPAL DWELLING?
LISTED AS THE APPLICANT'S ADDRESS IN THE "APPLICANT INFORMATION" SECTION?
DEBTS
YES
YES
NO
NO
IS ANYONE OTHER THAN YOUR SPOUSE A PART OWNER OF YOUR HOME?
YES
NO
In addition to Rent/Mortgage list all other debts (for example, auto loans, credit cards, second mortgage, home assoc. dues, alimony, child
support, child care, medical, utilities, auto insurance, IRS liabilities, etc.) Please use a separate line for each credit card and auto loan. Attach
other sheets if necessary.
APPLICANT OTHER
CREDITOR NAME AND ADDRESS
ACCOUNT NUMBER
RENT
MORTGAGE
(incl. Tax & Ins.)
ORIGINAL BALANCE
PRESENT BALANCE MONTHLY PAYMENT PAST DUE
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
TOTALS $
$
$
LIST ANY NAMES UNDER WHICH YOUR CREDIT REFERENCES AND CREDIT HISTORY CAN BE CHECKED
SIGNATURES
You promise that everything you have stated in this application is correct to the
best of your knowledge and that the above information is a complete listing of all
your debts and obligations. You authorize the credit union to obtain credit reports
in connection with this application for credit and for any update, renewal or
extension of the credit received. If you request, the credit union will tell you the
name and address of any credit bureau from which it received a credit
X
report on you. You understand that it is a crime to willfully and deliberately provide
incomplete or incorrect information in this application.
If there are any important changes, you will notify us in writing immed- iately. You
also agree to notify us of any change in your name, address or employment within a
reasonable time thereafter.
X
(SEAL)
APPLICANT'S SIGNATURE
DATE
(SEAL)
OTHER SIGNATURE
DATE
CREDIT UNION INFORMATION
LOAN OFFICER
CREDIT COMMITTEE OR OTHER
ADVANCE APPROVED:
YES
COUNTER OFFER WILL BE MADE, IF ACCEPTED, ADVANCE APPROVED
NO
YES
OUTSIDE INFORMATION CONSIDERED:
$
NO
APPROVED LIMIT
IF YES, ATTACH ADDITIONAL SHEET AND DESCRIBE
DEBT RATIO
REFERRED TO/REASON(S) FOR REFERRAL:
DESCRIBE COUNTER OFFER:
SPECIFIC REASON(S) FOR REJECTION:
SIGNATURES:
LOAN OFFICER
CREDIT COMMITTEE
X
X
ECOA NOTICE AND REASON FOR REJECTION SENT OR DELIVERED ON
DATE
DATE
DATE
X
DATE
X
(DATE) BY
LOAN ORIGINATOR ORGANIZATION
NMLSR ID NUMBER
LOAN ORIGINATOR
NMLSR ID NUMBER
Page 2 of 2
(INITIALS)
KTXAH1 (EST519)-e
NO EARLY START ACKNOWLEDGEMENT
I/WE do hereby state that there has been no site clearing, construction
work or construction equipment or materials on the Property listed
below.
__________________________________
__________________________________
__________________________________
DATED this _________day of___________, 20____.
________________________________
Signature
________________________________
Signature
CONSTRUCTION NOTICE KNOW YOUR RIGHTS AND REPSONSIBILITIES UNDER THE LAW. You are about to enter into a transaction to
build a new home or remodel existing residential property. Texas law requires your contractor to provide you with this
brief overview of some of your rights, responsibilities, and risks in this transaction.
CONVEYANCE TO CONTRACTOR NOT REQUIRED. Your contractor may not require you to convey your real
property to your contractor as a condition to the agreement for the construction of improvements on your property.
KNOW YOUR CONTRACTOR. Before you enter into your agreement for the construction of improvements to your
real property, make sure that you have investigated your contractor. Obtain and verify references from other people
who have used the contractor for the type and size of construction project on your property.
GET IT IN WRITING. Make sure that you have a written agreement with your contractor that includes: (1) a
description of the work the contractor is to perform; (2) the required or estimated time for completion of the work; (3) the
cost of the work or how the cost will be determined; and (4) the procedure and method of payment, including provisions
for statutory retainage and conditions for final payment. If your contractor made a promise, warranty, or representation
to you concerning the work the contractor is to perform, make sure that promise, warranty, or representation is specified
in the written agreement. An oral promise that is not included in the written agreement may not be enforceable under
Texas law.
READ BEFORE YOU SIGN. Do not sign any document before you have read and understood it. NEVER SIGN A
DOCUMENT THAT INCLUDES AN UNTRUE STATEMENT. Take your time in reviewing documents. If you
borrow money from a lender to pay for the improvements, you are entitled to have the loan closing documents furnished
to you for review at least one business day before the closing. Do not waive this requirement unless a bona fide
emergency or another good cause exists, and make sure you understand the documents before you sign them. If you fail
to comply with the terms of the documents, you could lose your property. You are entitled to have your own attorney
review any documents. If you have any question about the meaning of a document, consult an attorney.
GET A LIST OF SUBCONTRACTORS AND SUPPLIERS. Before construction commences, your contractor is
required to provide you with a list of the subcontractors and suppliers the contractor intends to use on your project. Your
contractor is required to supply updated information on any subcontractors and suppliers added after the list is provided.
Your contractor is not required to supply this information if you sign a written waiver of your rights to receive this
information.
MONITOR THE WORK. Lenders and governmental authorities may inspect the work in progress from time to time for their own purposes. These inspections are not intended as quality control inspections. Quality control is a matter for you and your contractor. To ensure that your home is being constructed in accordance with your wishes and specifications, you should inspect the work yourself or have your own independent inspector review the work in progress. MONITOR PAYMENTS. If you use a lender, your lender is required to provide you with a periodic statement showing the money disbursed by the lender from the proceeds of your loan. Each time your contractor requests payment from you or your lender for work performed, your contractor is also required to furnish you with a disbursement statement that lists the name and address of each subcontractor or supplier that the contractor intends to pay from the requested funds. Review these statements and make sure that the money is being properly disbursed. CLAIMS BY SUBCONTRACTORS AND SUPPLIERS. Under Texas law, if a subcontractor or supplier who furnishes labor or materials for the construction of improvements on your property is not paid, you may become liable and your property may be subject to a lien for the unpaid amount, even if you have not contracted directly with the subcontractor or supplier. To avoid liability, you should take the following actions: (1) If you receive a written notice from a subcontractor or supplier, you should withhold payment from your contractor for the amount of the claim stated in the notice until the dispute between your contractor and the subcontractor or supplier is resolved. If your lender is disbursing money directly to your contractor, you should immediately provide a copy of the notice to your lender and
instruct the lender to withhold payment in the amount of the claim stated in the notice. If you continue to pay the
contractor after receiving the written notice without withholding the amount of the clam, you may be liable and your
property may be subject to a lien for the amount you failed to withhold. (2) During construction and for 30 days after
final completion, termination, or abandonment of the contract by the contractor, you should withhold or cause your lender
to withhold 10 percent of the amount of payments made for the work performed by your contractor. This is sometimes
referred to
as “statutory retainage.” If you choose not to withhold the 10 percent for at least 30 days after final completion,
termination, or abandonment of the contract by the contractor and if a valid claim is timely made by a claimant and your
contractor fails to pay the clam, you may be personally liable and your property may be subject to a lien up to the amount
that you failed to withhold. If a claim is not paid within a certain time period, the claimant is required to file a mechanic’s
lien affidavit in the real property records in the county where the property is located. A mechanic’s lien affidavit is not a
lien on your property, but the filing of the affidavit could result in a court imposing a lien on your property if the claimant
is successful in litigation to enforce the lien claim.
SOME CLAIMS MAY NOT BE VALID. When you receive a written notice of a claim or when a mechanic’s lien
affidavit is filed on your property, you should know your legal rights and responsibilities regarding the claim. Not all
claims are valid. A notice of a claim by a subcontractor or supplier is required to be sent, and the mechanic’s lien
affidavit is required to be filed, within strict time periods. The notice and the affidavit must contain certain information.
All claimants may not fully comply with the legal requirements to collect on a claim. If you have paid the contractor in
full before receiving a notice of a claim and have fully complied with the law regarding statutory retainage, you may not
be liable for that claim. Accordingly, you should consult your attorney when you receive a written notice of a claim to
determine the true extent of your liability or potential liability for that claim.
OBTAIN A LIEN RELEASE AND A BILLS‐PAID AFFIDAVIT. When you receive a notice of claim, do not release
withheld funds without obtaining a signed and notarized release of lien and claim from the claimant. You can also reduce
the risk of having a claim filed by a subcontractor or supplier by requiring as a condition of each payment made by you or
your lender that your contractor furnish you with an affidavit stating that all bills have been paid. Under Texas law, on
final completion of the work and before final payment, the contractor is required to furnish you with an affidavit stating
that all bills have been paid. If the contractor discloses any unpaid bill in the affidavit, you should withhold payment in
the amount of the unpaid bill until you receive a waiver of lien of release from that subcontractor or supplier.
OBTAIN TITLE INSURANCE PROTECTION. You may be able to obtain a title insurance policy to insure that the title
to your property and the existing improvements on your property are free from liens claimed by subcontractors and
suppliers. If your policy is issued before the improvements are completed and covers the value of the improvements to be
completed, you should obtain, on the completion of the improvements and as a condition of your final payment, a
“completion of improvements” policy endorsement. This endorsement will protect your property from liens claimed by
subcontractors and suppliers that may arise from the date the original title policy is issued to the date of the endorsement.
BY SIGNING BELOW YOU ACKOWLEDGE RECEIPT OF PAGES 1 AND 2 OF THIS CONSTRUCITON
NOTICE.
Signature________________________________________________ Date____________________________________________________ Signature________________________________________________ Date____________________________________________________ Servicing Disclosure Statement
APPLICANT 1 NAME:
ACCOUNT NUMBER:
APPLICANT 2 NAME:
APPLICANT 3 NAME:
APPLICANT 4 NAME:
PROPERTY ADDRESS:
NOTICE
NOTICE TO FIRST LIEN MORTGAGE LOAN APPLICANTS: THE RIGHT TO COLLECT YOUR MORTGAGE LOAN
PAYMENTS MAY BE TRANSFERRED.
You are applying for a mortgage loan covered by the Real Estate Settlement Procedures Act (RESPA) (12 U.S.C. Section 2601 et
seq.) RESPA gives you certain rights under Federal law.
This statement describes whether the servicing for this loan may be transferred to a different loan servicer. "Servicing" refers to
collecting your principal, interest and escrow account payments, if any, as well as sending monthly or annual statements, tracking
account balances, and handling other aspects of your loan. You will be given advance notice before a transfer occurs.
SERVICING TRANSFER INFORMATION
X We may assign, sell or transfer the servicing of your loan while the loan is outstanding.
We do not service mortgage loans of the type for which you applied. We intend to assign, sell, or transfer the servicing of your
mortgage loan before the first payment is due.
The loan for which you applied will be serviced at this financial institution and we do not intend to sell, transfer, or assign the
servicing of this loan.
SIGNATURES
I/We have read this disclosure form, and understand its contents, as evidenced by my/our signature(s) below.
X
APPLICANT 1 SIGNATURE
X
DATE
APPLICANT 2 SIGNATURE
DATE
APPLICANT 4 SIGNATURE
X
APPLICANT 3 SIGNATURE
CUNA MUTUAL GROUP, 2007, 11, ALL RIGHTS RESERVED
DATE
X
DATE
RM0022-e
Right To Receive Copy Of Appraisal
Applicant's Name : _____________________________________________________
Account
Number: ___________________
Applicant's Address: ____________________________________________________________________________________
____________________________________________________________________________________
Property Address:
APPRAISAL NOTICE
We may order an appraisal to determine the property's value and charge you for this appraisal. We will promptly
give you a copy of any appraisal, even if your loan does not close.
You can pay for an additional appraisal for your own use at your own cost.
X
X
APPLICANT 1 SIGNATURE
DATE
APPLICANT 2 SIGNATURE
DATE
APPLICANT 4 SIGNATURE
X
DATE
X
APPLICANT 3 SIGNATURE
CUNA Mutual Group 2007, 13 All Rights Reserved
DATE
RM0041-e