The U.S. government is now working to make the mortgage process a bit easier for consumers.  Since May, officials have been trying to simplify and combine two required forms that show would-be-borrowers their final loan terms and costs before closing.  The "Know Before You Owe" campaign has started to sweep financial reforms, and has produced two drafts of the merged documents that are still in the testing phase.  The campaign is looking to help get rid of the legal and technical wording on certain forms that many borrowers do not understand.  When you take out a loan to purchase a home or refinance your mortgage, you generally receive two key federal mortgage disclosures with your final loan terms:  the Truth in Lending Disclosure, and the HUD-1 Settlement Statement.  The terms and costs on these disclosures should be similiar to the ones you received when you first applied for the loan.  Being able to compare these terms and costs is what it means to "know before you owe".  By merging these documents and certain other federal disclosures into a single form, it is believed the lending process will be simplified for borrowers.  This same committee plans on simplifying additional forms in the months to come. 

To read the full article, please visit:

http://www.consumerfinance.gov/knowbeforeyouowe/