So you’ve found your dream house, your offer has been accepted, and now you just need to get through the closing process before you can move into your beautiful new property. Unfortunately, closing can be a complicated and frustrating process. You’ll need to read through and sign a nearly endless pile of documents before the keys are finally handed over. In today’s blog, learn more about the home loan documents that you’ll see as a buyer during closing.
The Home Loan Documents You’ll See at Closing
The note acts as proof that you are indebted to your lender and also outlines the terms of the loan and offers the lender the ability to transfer or collect the debt. There are a number of figures that you’ll see on the note, including the original debt amount, interest rate, terms of rate changes, and the timeline you have to repay your debt. In the case that your debt is resold to another lender, the bank will give the note to the buyer of your debt.
Your mortgage is a document that essentially states that you are willing to give up your home in the case that you are unable to meet the repayment guidelines outlined in the note. Your home acts as your collateral on the agreement and your mortgage is a lien against your property, which is recorded in the office of your county recorder.
Though your loan application was finished prior to closing (likely well before you got to the settlement table), it will need to be updated if there have been any recent changes. This is particularly common in cases where your financial situation has changed.
The TILA is a document that is meant to ensure that a buyer fully understands the financial terms of their loan. The document will include information such as the amount financed, APR, finance charges, and total payments.
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At Residential Title & Escrow, we bring peace of mind to the settlement table. If you are looking for a title company to help you through the closing process, please contact us today! You can also fill out our simple online title request form and one of our knowledgeable representatives will get in touch with you promptly. Be sure to follow us onFacebook,Twitter, Pinterest, and Google+ to stay up to date.