When there is an acceptable application and firm commitment is guaranteed, then the final step can be undertaken - the closing of the mortgage. At this time, the loan as well as the sale is being closed. At this point, the following things should be taken cared of :
Closing date. Upon approval of the mortgage loan and receipt of a letter of commitment from the lender, the actual closing date must be settled with the lender and seller. Ensure that settlement will happen before the lock agreement rate expires.
Closing costs. As soon as the closing date has been settled, the cost of closing and the down payment must now be settled. It is imperative that the amount for closing is settled.
Final inspection of the property. When the purchase agreement includes repair and maintenance of the property, then the property must undergo final inspection.
An escrow agent, attorney, real estate agent, representative of the insurance company of the title should conduct the closing. During the settlement, the following documents should be signed :
The Deed passes the title to real property from original owner to new owner. It contains an accurate description of the property being transferred and should be governed by the laws of the state.
The Mortgage allows the lender to foreclose real property when loan payment is delayed. It states the legal rights of the mortgagee and lender.
A Deed of Trust replaces the mortgage in some states. It allows the trustee to sell the property when there is a delay in the payment.
The Note is a document accepting the debt and guarantees payment depending on the terms of the loan agreed upon. It likewise cites the penalties and alternatives the lender can undertake if there is default in payments.
The HUD-1 Settlement Statement is agreement signed by you and the seller.
The Truth-in-Lending statement It reveals the terms of the loan, including rate of interest, amount of loan, the annual percentage rate (APR) and the total payments needed.
The Initial Escrow Statement enumerates tax estimates, insurance premiums and other fees expected to be paid from the escrow account during the first year of the loan.
The Mortgage Servicing Disclosure Statement is a document revealing to the borrower of the lender's intention to service or transfer the loan to another lender.
Make sure you have exact knowledge of your initial and succeeding payments as well as the charges and consequences for a default in.
John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website.
