In New Jersey, what must a mortgage lender provide to a borrower regarding the terms of the loan?

Providing a written disclosure of all loan terms, including interest rates and fees, is critical in maintaining transparency and fostering trust between the borrower and the lender. This requirement ensures that borrowers fully understand their financial obligations before entering into a mortgage agreement. In New Jersey, this written disclosure is mandated by law and includes specific details about the loan terms, which helps to prevent potential disputes and misunderstandings later on.

The rationale behind this requirement is to protect consumers by ensuring they have access to all pertinent information regarding their mortgage, allowing them to make informed decisions. This includes details about the interest rates, fees associated with the loan, and any other terms that may affect the overall cost of borrowing.

Other options, such as an oral summary, a comparison sheet, or a verbal commitment, do not fulfill the legal requirements for disclosure. They lack the formality and clarity that a written document provides, which is essential for legal and practical purposes in mortgage transactions. Thus, having a comprehensive written disclosure is the correct and necessary approach for mortgage lenders in New Jersey.