Don't be confused by all the documents, notices, and statements. When you're asked to sign these, your home loan is in the final steps of the buying or refinancing process.
This is your promise to pay the lender according to the terms spelled out. Contains interest rate, payment amounts and length of obligation.
Also known as Trust Deed in some states. This document gives the lender an interest in your property until you have completed the obligation in the Note. The Mortgage Deed is filed in the county public records to preserve the lender’s interest.
This is also called a Disclosure Statement. Perhaps the most confusing of all the documents, it spells out the necessary costs associated with the loan and shows the A.P.R. (Annual Percentage Rate) interest rate. This rate is simply a different way to show the total cost of your loan including the incidental charges in addition to the actual interest rate.
Also called HUD 1A, this is a detailed breakdown of all charges associated with the loan and for the purchase of property. Calculations may include property taxes, insurance charges, inspection fees and other items agreed to during the process. Your “bottomline” is usually on the first page (as “Amount Due From Borrower.” These are funds needed at closing.
There are one or more affidavits in most closings. They are sworn statements of fact. ‘Generally used to make certain that conditions on which the loan was made have not changed.
The key instruments are outlined above, however, many times there are other matters that are clarified through statements presented for you to sign. These may include:
- Name Clarifications
- Property Tax Documents
- Insurance Papers
- Inspection Reports
- Copies of Verification of Receipt