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What Documents To Review At A Closing For A Mortgage
Three important mortgage documents
1. Mortgage
2. Note
3. HUD-1 Settlement Statement
Mortgage
? People who sign only have an interest in the property and our not responsible to pay for the loan
? Make sure the correct legal description and address are listed
? Gives the rights of the mortgage company
o Usually very standard
? Secures the note
? Gives the lender a claim against the home if you fail to live up to the terms of the loan
Note
? Those who sign the note are responsible for paying the mortgage and their credit will be effected (positively and/or negatively) by the loan
? States the interest rate
o Fixed
o ARM loan and how often the interest rate will change
? States the loan term
o How many years the loan is
o A prepayment penalty will be listed if applicable
? States the late charge amount
o A percentage of the principal and interest
? States the principal and interest of the payment
o The escrow amount is not stated
? States the payment is due
o Check with the lender if there is a grace period
? States the loan amount
? Promise to repay the mortgage
? States what the lender can do if you fail to make payments ...