What Mortgage Documents Are You Signing? Part 1
As your home’s closing date approaches, you may be wondering what mortgage documents you will need to sign. In the first of a two-part series, here is a closer look at the key documents any home buyer can expect to review and sign throughout the application process and during the closing phase. Finalizing your mortgage and signing all the paperwork is the last step before you officially own your dream home. But the financing process is so paper intensive – from application to close – that many prospective buyers feel slightly overwhelmed as if they’re adrift in a sea of paperwork. Here’s a closer look at some of the key documents that you need to be aware of throughout the mortgage process.
Universal Residential Loan Application
The Universal Residential Loan Application is the preliminary document that interested buyers file when applying for a mortgage. Your loan application contains a wide variety of information about you, including your basic contact information, your finances, and information about your loan. The application will be supplemented by secondary documentation related to your income and employment, financial assets, expenses and liabilities. Your lender will also need the details of the property that you hope to purchase. In combination with your credit report, this information is used to determine if you’re eligible for financing.
After you’ve submitted an application, a lender that gives you a preliminary approval will provide you with a pre-approval letter. This letter serves as a conditional commitment to give you a loan up to a specific maximum. The pre-approval letter will help you during the search and offer process, and assist you in determining how much house you can afford. Once you’re ready to move ahead with your actual mortgage, you’ll be required to resubmit your application noting any changes and providing any additional documentation needed.
Good Faith Estimate
A Good Faith Estimate provides a detailed overview of the costs associated with your loan. It breaks down the component parts of the loan. It details other costs that will need to be paid, such as home appraisal fees, title search fees, and the expenses associated with pulling your credit report. It will also outline what funds you need to have on hand during the close, to cover the down payment and any additional closing costs.
The Truth-in-Lending document is a legally required statement that outlines the total costs of your loan. It gives information on your principal total, financing charges, a payment schedule, and your annual percentage rate (APR) – including interest rates, points, fees, and any other charges.
Are you a home buyer in Las Vegas that’s considering financing a purchase? Contact Sydnee Johnson today to learn more about your options and to discuss any questions you might have, including what mortgage documents you need to sign.