Learn More Here on Mortgage Documents Before Closing Your House
If you are in the process of purchasing your first home, you must be feeling excited. Closing in your house is the last stage in the process of purchasing a home. You will be the owner of your own home if you finally get through this stage. The following are some of the most critical mortgage documents that you need to have to have a smooth closing on your house. Closing disclosure is one of the papers that you will need to first review with your closing agent. The expenses for purchasing your home is what is contained in this document. The kind of values that are included here are real estate taxes and loan fees among others. You need to be ready with a loan estimate from also.
This is the document that has all the essential information about your loan. Your loan estimate form should be given to you within a few days of applying for the loan. During the closing day, you need to sit and compare both the closing disclosure and loan estimate documents. A promissory note is another important document that contains your pledge to pay the loan back and the legal evidence of your mortgage. The kind of penalties you will have to face if you do not repay your mortgage loan is also included in this document.
Deed of trust is another one of these documents which act as an instrument of security. Your home will be the security for the loan after signing this document. You will usually be accepting with the lender that they can foreclose on your house if you fail to repay your loan. You also need a certificate of occupancy which certifies that the new home you want to buy is built according to the laws and codes of the state. This document is issued at the local department of the building. This applies only if the home you want to buy is newly built.
Homeowner insurance is crucial before you can settle on your house. Ensure that you have a ready document that proves your home is already insured before the closing day. You will also need to show that your home has been inspected. This document is for ensuring that the house you want to buy is safe for living. Another important mortgage document that you should have is your identity card. Ensure that the names you have used on the other records are the same on your identity card.