Back dating mortgage documents explained

Back dating mortgage documents explained

The mortgage closing process varies from state to state. You have found a home you want, been approved for the loan you need, and have now entered the final phase of loan processing. If you will be paying your down payment or any closing costs at your settlement, make sure that you have a check or other acceptable form of payment ready. Written estimate of costs the borrower will pay at closing, provided by a lender within three days of loan application.

An initial statement of personal and financial information required to approve a loan provided by the borrower and necessary to initiate the approval process for a loan. Also known as impounds, the funds in this account are held in trust by the lender on behalf of the borrower, and are used to pay expenses such as property taxes and homeowner's insurance. The note is the same as your loan contract, which draws out the rate, payment intervals, payment changes, and possible penalties acquired with your property. Being informed and prepared will ensure that you protect yourself, and are able to enjoy a quick and painless closing process. States that the lender does not disclose any nonpublic information about the borrower to anyone, except as permitted by law.

Assemble any documents that you may need to refer to during closing. The note is the loan agreement, and it outlines the terms of the loan. While realistic, the house that you are planning to purchase does not have to put a strain on your finances or your future. In the document the borrower attests that they have not done anything to affect the title to property, that they are not the subject of divorce or bankruptcy proceedings, etc.

You want any inconsistencies or discrepancies corrected before settlement. This document will need notarization. However, it might be a smart choice to break up the payment plan and take out a loan.

For example, make sure you are not being billed for your home appraisal if you paid for it already. There may be multiple subordination agreements. Promissory Note This document is legal evidence of your mortgage and pledge to repay the loan, and a copy is kept as a public record, often with your county clerk office.

By taking out a mortgage, you are simply giving yourself more time to pay the entire price tag on your property. It also lists the penalties the lender can impose if you fail to make routine mortgage payments. This document also states whether or not the borrower intends to occupy the property as a primary residence. If one or more of the boxes are checked, then the appropriate Rider will be attached. It contains information regarding the details of your loan, including the amount financed, the annual interest percentage rate, the finance charge, and the payment schedule.

Certificate of Occupancy This document certified that a newly-constructed home is in compliance with local building codes and laws. Will disclose whether the borrower's loan will be sold.

Also known asAn initial statement

Because this document contains a lot of information that is essential for homeowners to review, it is required by law that it be sent to you three business days before closing. The Deed of Trust The Deed of Trust is a security instrument, and also may be referred to as a Mortgage depending on the state your property is located in. Being prepared and staying organized can help ensure that your closing is quick and easy. To start the process of buying your first home, contact a PennyMac Loan Officer today to get the information you need. This document authorizes the lender to payoff the old loan with the funds from the new refinance loan.