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Important Information About Mortgage Documents Before Closing On Your House

If you are in the process of purchasing your first home, you must be feeling excited. Closing in your house is the last stage in the process of purchasing a home. You will be the owner of your own home if you finally get through this stage. Below are the essential mortgage documents that you need to have for you to have an easy time closing on your house. One of these documents is the closing disclosure which you will need to first discuss with your closing agent. This document contains the details about the costs of buying your home. Real estate taxes and loan fees are the kinds of these costs details among others. You need to be ready with a loan estimate from also.

This one covers every critical detail concerning your loan. Your loan estimate form should be given to you within a few days of applying for the loan. During the closing day, you need to sit and compare both the closing disclosure and loan estimate documents. You also need to get ready with a promissory note which contains your pledge to pay the loan back and the legal evidence of your mortgage. There is also information about the kind of penalties you will have to face in case you fail to repay the mortgage as agreed.

Deed of trust is another one of these documents which act as an instrument of security. By signing this document you will agree that your home will act as the security for the loan. You will usually be accepting with the lender that they can foreclose on your house if you fail to repay your loan. You also need a certificate of occupancy which certifies that the new home you want to buy is built according to the laws and codes of the state. This document is issued at the local department of the building. If you are purchasing a new home that is only time that this will be applicable.

You need to have homeowner insurance before you can close on your house. It is, therefore, essential to have a ready report as proof of having issued the homeowner insurance. You will also need to show that your home has been inspected. The purpose of this document is to verify that the home you want to buy is safe for holding. And lastly, you will need to also have your valid identity card with you. Ensure that the names you have used on the other records are the same on your identity card.

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