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Homebuying Documents and What to Expect at Closing

Homebuying Documents and What to Expect at Closing


Homebuying Documents and What to Expect at Closing

If you’re buying a house anytime soon, it pays to start exercising your writing hand now. You will sign your name dozens and dozens of time during closing.

While we joke about the exercise plan, we are serious when we say your closing will entail miles of paperwork and tons of signature. Before you get there, you need to be ready for it. Whether you are approved for any type of loan from a HomePath mortgage or a VA loan to a conventional loan, be prepared to see a lot of documents.

Once you’ve decided on a loan type, gotten a mortgage loan, and completed the inspection, it’s time to close. These are some of the documents that you will be presented with and signing. (Keep in mind these may vary slightly depending on the state you live in.)

Mortgage Note

This document lays out the details of your mortgage loan such as the length of the loan, interest, and terms. Signing it means you are agreeing to pay the money back at the amount and in the time that’s specified.

Mortgage

Also referred to as the “Deed of Trust” this document gives the mortgage company the right to foreclose if you don’t keep up your end of the agreement and pay as laid out in the mortgage note.

Deed

The deed transfers ownership of the property from the seller to you.

Closing Disclosure

Your mortgage lender should give you this paperwork before the actual closing, so that you have time to read it thoroughly. It itemizes details of what you will be expected to pay at closing, such as the down payment and any closing costs.

Escrow Disclosure

When you have a mortgage, you usually pay your home’s insurance and taxes as part of the monthly payment. These funds go into an escrow. This document explains this in detail and lists the amount of money you will initially be paying in your monthly payment that is earmarked for escrow.

Property Tax Statement

This document states the property taxes that will be required by the buyer. If the seller has already paid some of the current year’s taxes, the buyer may need to reimburse these funds.

Proof of Occupancy

This is also called a “Certificate of Occupancy” and states the property has met local building codes and is inhabitable. This typically applies to newly constructed homes.

Homeowner’s Insurance Proof

You will most likely be required to carry homeowner’s insurance as long as you have the mortgage. As mentioned above, the payments will be held in escrow and paid on your behalf. You will sign this document agreeing to carry insurance.

Title Insurance Document

Depending on the state, title insurance may be optional or required. Title insurance protects you as the buyer if the title is ever disputed.

Familiarizing yourself with these documents and understanding what is expected of you makes it less stressful when you come to the closing table. By being aware of these documents and what each of them entail, you won’t be overwhelmed by the volume of paperwork you see.

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Mortgage Investors Group, based in Tennessee, offers residential financing in a number of states in the southeast, See MIG Service Areas. Terms and conditions to apply to home financing. We want to share with you the loan terms vary based on several characteristics and your financial profile. These include but are not limited to loan program, loan purpose, occupancy, credit history, credit score, assets, and other criteria per loan type. The repayment terms and interest rate may vary from time to time. The terms represented here are based on certain assumptions outlined below and/or noted on the loan outline page. Additional details concerning privacy, program disclosures, licensing specifics may be found at migonline.com Legal Information.

MIG Loan Officers will help gather the information needed for an individual assessment to provide home financing which matches the loan characteristics with your home financing needs based on your financial profile, when you are ready to begin a full loan application. For estimates and general information before that step, the basis for which the mortgage financing information are as follows:

  • Rates are subject to change at any time.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Payments will vary based on program selection, current rates, property location, etc.
  • Not all programs are available in all states.
  • Some loan programs may not be available to first time home buyers.
  • Terms and conditions apply, which may include restrictions or limits per loan program.
  • Information is generally based on primary residence occupancy with no cash out when refinancing.
  • Unless otherwise stated, terms shown are estimates based in part on credit score of 700 or higher; owner occupancy, escrow account is established for taxes and insurance(s); debt-to-income ratio no higher than 43.0%; PMI applies to conventional loan programs over 80.0% LTV; VA,FHA & RD require insuring fees included in loan and/or payment; fixed rate, 30 year term.

An MIG Loan Officer is available to help with your financial details to determine which characteristics apply to your situation for a personalized look into which loan program best fits your home financing needs. Please use the Find a Loan Officer link or reach out to Mortgage Investors Group at 800-489-8910. Equal Housing Lender 1.2020