Important Information About Mortgage Documents Before Closing On Your House

It must be an exhilarating feeling if you are in the process of obtaining 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 will also need to be ready with a loan estimate form.

This one covers every critical detail concerning your loan. Within a few days of applying for a loan, you should be able to have received your loan estimate loan. It is important to examine both the closing disclosure and the loan estimate documents on the closing day. Another important document is the promissory note which contains your pledged for repaying the loan and the legal evidence of your mortgage. In case you fail to repay your mortgage as agreed, this documents contains information about the kind of penalties that you will have to face.

Deed of trust is another one of these documents which act as an instrument of security. The security for your loan will become your home 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. 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 applies only if the home you want to buy is newly built.

Homeowner insurance is crucial before you can settle on your house. It is, therefore, essential to have a ready report as proof of having issued the homeowner insurance. You will also need to show that your home has been inspected. This document is for confirming that the house you want to occupy is safe. A valid identity card is also another mortgage document that you should have with you. The names on your identity card should match the ones on all the other mortgage documents that you have.