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Mortgage Documents Needed for the House Closure

If you are in the process of purchasing your first home, you must be feeling excited. The previous process when it comes to buying a home is the closing on the house. When you finally get through it, you will be the owner of a new home. The following are some of the most critical mortgage documents that you need to have to have a smooth closing on your house. A closing disclosure is the first document that you and the closing agent will need to review. This document contains all the costs that will be required for the purchasing of your home. Among the cost details that are included in this document include: real estate taxes and loan fees. A loan estimate form is another document you have to be prepared with.

Every critical aspect of your investment are contained here. Within a few days of applying for a loan, you should be able to have received your loan estimate loan. It is important to examine both the closing disclosure and the loan estimate documents on the closing day. A promissory note is another important document that contains your pledge to pay the loan back and the legal evidence of your mortgage. The kind of penalties you will have to face if you do not repay your mortgage loan is also included in this document.

Another report that also serves as an instrument of security is the deed of trust. Your home will be the security for the loan after signing this document. By signing this document, you will generally be agreeing that if you do not repay your loan, the lender can proceed to foreclose on your house. A certificate of occupancy is another mortgage document that certifies that a new home is built according to the laws and the codes of the state. You get this document from your local building department. 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. Ensure that you have a ready document that proves your home is already insured before the closing day. You will also need to show that your home has been inspected. This document is for confirming that the house you want to occupy is safe. Another important mortgage document that you should have is your identity card. The names on your identity card should be the same that you have used on all the other mortgage documents.

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