As a homebuyer, it’s natural to feel a bit overwhelmed by the various mortgage documents involved in the process. But don’t worry, each document serves a specific purpose and understanding them will help you feel more confident! Here we’ll break down the key mortgage disclosures you may encounter and why they’re important to a successful homebuying experience.
Purchase Agreement: The Purchase Agreement is a binding contract between you and the Builder. It outlines the terms and conditions of the home purchase, including home price, construction timelines, contingencies and fees.
Loan Estimate: A Loan Estimate is one of the most important documents you’ll receive when financing your new home as it provides an estimated breakdown of the loan terms, estimated costs, and the fees you may owe.
Closing Disclosure: The closing disclosure must be provided at least three days before your closing and will include your final loan terms, closing costs and escrow account details. Be sure to carefully review these details!
As you navigate the mortgage process for your new home, it’s crucial to thoroughly review each of these documents carefully. Here are key areas to focus on and potential pitfalls to be aware of when examining these important documents.
- Review Personal Details: Verify all your personal information is correct.
- Ask Questions: If any terms or fees are unclear, don’t hesitate to ask your Loan Team to clarify. That’s what they are there for!
Each of these mortgage documents provide valuable information that will help you make informed decisions and ensure a smooth homebuying process. Embrace this exciting time, and remember that with careful attention to detail, you may soon be enjoying the many benefits of homeownership!
