Paperwork Which You Must Be Familiar With When Closing On Your New Home
As of late you may feel as if you need a college degree in order to cope with the process of purchasing a new home
. From the beginning until the closing there are many things that can trip you up but in the present state of the economy it is likely that you are willing to take a chance and get a deal on a property all your own. Once all the early paperwork has been done, a price agreed upon, and of course you have been approved for financing, the next thing that you will need to concern yourself with is the process of closing on your new home or property.
Closing is the point at which you sign documents for the agreed upon price and the money that you have borrowed and pay all of the costs that are connected with the process of closing. In the end, after all the payments are made you will receive full title of ownership to the property. While there will be a assortment of different papers that you will need to sign there are three that are of the utmost importance and that should be maintained in a safe place.
One of the paperwork items that you will likely come upon at the closing will be a HUD-1. This is a statement that itemizes all of the different costs involved in your real estate purchase. It is an extremely significant paper which will be very useful at tax time and should be kept in a safe place for the duration of time that you own that residence.
An additional of these important papers is the Promissory Note. This note is like an IOU that you sign telling that you owe the lender a set amount of money for the property you are obtaining and the total amount owed to the mortgage holder. All of the terms and conditions of the loan will be contained in this legal document.
Finally, the Deed of Trust is an important document. Although, not used in every state many states do use them. What this document does is it reveals to whom the property belongs, and this is usually one or two individuals who are specified as trustees by the bank. In states where this document exists it is necessary that you obtain a release of deed when the mortgage is paid in full. If you don't acquire this from the lender, then you should contact them and obtain a copy of this form for your files. If you don't follow through and make all of your payments these trustees have the right to foreclose on your property and liquidate your home.