When you start looking into getting a mortgage, there are some important legal papers you will need to know about. These papers help keep both the lender (the bank or company loaning you money) and the borrower (you) safe in the deal. Here’s a quick overview:
Mortgage Note: This paper is the most important one. It’s where you promise to pay back the money you borrowed, plus any extra charges (interest). It also explains how you will make those payments.
Mortgage or Deed of Trust: This is another important paper that protects the lender. It says that if you don’t keep your promise and don’t pay back the loan, the lender can take your property.
Closing Disclosure: This document shows all the costs you will face when you close the mortgage. It helps you know exactly what you are agreeing to.
Loan Estimate: You will get this paper early on. It gives you an idea of what the loan will look like and what costs to expect.
Understanding these papers is really important to make the mortgage process go smoothly!
When you start looking into getting a mortgage, there are some important legal papers you will need to know about. These papers help keep both the lender (the bank or company loaning you money) and the borrower (you) safe in the deal. Here’s a quick overview:
Mortgage Note: This paper is the most important one. It’s where you promise to pay back the money you borrowed, plus any extra charges (interest). It also explains how you will make those payments.
Mortgage or Deed of Trust: This is another important paper that protects the lender. It says that if you don’t keep your promise and don’t pay back the loan, the lender can take your property.
Closing Disclosure: This document shows all the costs you will face when you close the mortgage. It helps you know exactly what you are agreeing to.
Loan Estimate: You will get this paper early on. It gives you an idea of what the loan will look like and what costs to expect.
Understanding these papers is really important to make the mortgage process go smoothly!