3 Most Important Mortgage Documents

Important Mortgage Documents

Buying a home requires a lot of paperwork. When you decide on a mortgage lender, you will have to provide paperwork detailing your finances, income, and residential history. There is also a large stack of disclosures that you need to sign before your loan gets approved. While every document that is included in the mortgage process is important, some documents are more important than others. Make sure to pay special attention to these 3 most important documents when navigating through your mortgage.

  1. Settlement statement – the settlement statement, also known as the HUD, will show the final versions of all the line items that you are paying for with your home. The HUD will show each individual fee of your mortgage clearly, starting with the summary and then followed by the line items.
  2. Promissory note – also known as the note, the promissory note is your actual loan contract. It will contain all the terms of your loan and specify your rate, payment changes, and payment intervals. It will also state if there is a prepayment penalty if you decide to pay off the loan early.
  3. Security instrument – also called the mortgage or the deed of trust, the security instrument is used to pledge the property as security for the note. Based on the type of loan that you choose, you will need to comply with one of three occupancy provisions that are contained in all deeds of trust and mortgages, including second home, owner occupied, or non-owner occupied.

For all of your real estate needs when buying a house to ensure that all of your necessary mortgage documents are properly handled, contact realtor Cary Amo in Lafayette, California. I can help you find the home of your dreams and work with you to make sure that the entire buying process goes as smoothly as possible.

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