What does a Borrower's Certificate indicate?

A Borrower's Certificate is a document that confirms the borrower's intent to proceed with a mortgage application after receiving necessary disclosures, such as interest rates, terms, and associated costs. This certificate typically signifies the borrower's acknowledgment of the information provided and their decision to move forward with the lending process.

This step is crucial in the mortgage application journey, as it allows both the borrower and the lender to establish a clear understanding regarding the terms of the loan and the borrower's commitment to the process. It is an important part of the regulatory requirements to ensure that borrowers have been adequately informed and have confirmed their intent before further steps are taken.

In contrast, other options, like serving as a proposal for loan terms or guaranteeing loan approval, misconstrue the purpose of this certificate. They imply processes or commitments that are not actually reflected in the Borrower's Certificate. Additionally, it does not function as a statement of the borrower's credit history, which is a separate matter reviewed during the loan approval process.