Learn More Here on Mortgage Documents Before Closing Your House
You must be excited if you are in the process of buying your first home. The previous process when it comes to buying a home is the closing on the house. You will be the owner of your own home if you finally get through this stage. For you to smoothly close on your home, it is essential to have these mortgage documents with you. One of these documents is the closing disclosure which you will need to first discuss with your closing agent. This document contains the details about the costs of buying your home. Among the cost details that are included in this document include: real estate taxes and loan fees. 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. You also need to get ready with a promissory note which 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.
The other mortgage document is the deed of trust which also works as an instrument for protection. The security for your loan will become your home after signing this document. You will be deciding that if you fail to keep up with the payments for your loan the lender can foreclose on your house. A certificate of occupancy is another mortgage document that certifies that a new home is built according to the laws and the codes of the state. You get this document from your local building department. This is just important if you are purchasing a new home.
Before you can close on your house, homeowners insurance is also needed. 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. The purpose of this document is to verify that the home you want to buy is safe for holding. Another important mortgage document that you should have is your identity card. The names on your identity card should be the same that you have used on all the other mortgage documents.