Closing your mortgage loan would be a crowning achievement of your lifetime. After all, how many people get to live the American dream of owning a home? You will be going through a whirlwind of emotions. The excitement and pride of owning a home along with the burden of the mortgage loan. However, it may feel, you are entering an exciting new phase of life. Before you close the mortgage loan with the moneylender, there is one last thing that remains. The closing agent will present a number of documents and will ask you to sign after reviewing them. With all the technical nuances the moneylenders throw, understanding the documents required and procuring them is not an easy task.
Closing Disclosure
The Closing Disclosure is the most important document in the loan closing process – mortgage closing cost calculator Florida. It contains all the components of the mortgage loan such as the financed amount, interest rates, tenure of the loan payment, and the finance charge. The document will contain miscellaneous expenses including real estate taxes. It is important to check this document with the loan estimate document that you would have received in the initial stage. There would be some changes made to the final closing disclosure document. However, if there are significant deviations, then it is your right to demand an explanation for it.
Promissory Note
The Promissory Note is a legal document that binds you with the moneylender. By signing the document, you pledge that you abide by the terms and conditions of the loan repayment schedule. The document outlines the details of the mortgage loan such as the loan amount, interest rates, and repayment schedule.
The Deed Of Trust
By signing this document, you give permission to the money lender to put up your home for auction if you are unable to repay the mortgage loan. You pledge your home as security in order to avail the loan.
Certificate Of Occupancy
This document ensures that your home is constructed according to the standards set by the local building codes and laws. If you are buying the home, you need to get the document from the seller. You will need to submit the document in order to move into the home.
It is normal to panic while signing the documents as you are taking a big step in life. However, it is important to review all the documents before signing them so that you don’t get into any unwanted trouble.