Buying a Home: The Three Most Important Documents
Buying a home is a huge milestone….because it’s a huge purchase! There is a lot of documentation involved in purchasing a home; be a responsible consumer and learn about some of the most important documents prior to closing.
Closing Disclosure
This shows how much you're borrowing, how much the financing will cost over the life of the loan, what your payment schedule will be, what your interest rate will be, and whether there are additional costs such as points and fees. The Closing Disclosure outlines all the settlement costs, such as origination fees and title insurance. Some--but not all--costs listed on this disclosure are negotiable. Lenders are required to provide this to consumers in order to make the terms of the loan as easily understood as possible. Its purpose is to protect consumers from agreeing to loan terms with hidden fees or costs, etc.
The Note
This document provides the loan amount and terms. This is your promise to repay the amount borrowed – make sure it is what you agreed to before you sign. If you have an adjustable rate mortgage, the note will spell out how your rate will adjust in the future.
The Mortgage
The mortgage states the name of the borrowers, property address and the legal description of the property. This document secures the lenders interest in the property – so if you do not pay per the agreed terms, then the real property can be foreclosed to satisfy the debt. It also contains clauses and conditions related to hazardous waste, required occupancy of the property, and ways to communicate with the lender.
Visit CAMPUS USA Credit Union today. Our loan specialists are available to make sure you understand all the fine print and guide you through the entire process from application to closing! Check out some of the mortgage options we have available.
By Campus USA at 25 Apr 2019, 16:44 PM