The final step towards getting your mortgage approved is known as closing. In this meeting, you and your spouse (if he or she is a co-borrower) should be there together with your real estate agent to meet with the escrow officer, the closing agent, and the seller’s real estate agent.
The main object of this meeting is for you to sign all the documents that will finally transfer the property in your name. Make sure that you read all the documents very well so that you understand what your obligations are and you are fully knowledgeable of all the fees you need to pay for. It is generally a good idea to ask your real estate agent to go through the documents with you so that you comprehend everything and are more comfortable affixing your signature on a document where the terms and conditions are made very clear to you.
Some of the documents that you will be signing are the mortgage note, the mortgage or deed of trust, the deed and various affidavits and declarations. The mortgage note is proof of your debt. It will detail the monthly amortizations you need to make and the terms agreed upon by all parties regarding repayment. This instrument will also detail the consequences of failure to observe your obligations.
The mortgage or the deed of trust is the security instrument of the lender. In the event that you default on your monthly amortizations, you give the lender the right to foreclose the property since this is the collateral used in granting you the loan. Other responsibilities that you need to perform as a homeowner that are outlined in the deed of trust is to make payments on time, insure the property and see to it that the house is well-taken care of.
This program is ideal for anyone interested in real and lasting credit improvement.
The deed is the legal instrument that transfers the ownership of the property to you. However, while you are still paying for the mortgage, the title is conveyed to a neutral third party until such time that you pay the loan in full. The closing agent sees to it that the deed is recorded and made party of the public records of the county.
Finally, the affidavits and declarations that you will sign are simply manifestations that something is true. For instance, you declare that the property will be your official place of residence starting from a specified date.
Once you have signed all the necessary papers and paid the required closing fees, the keys of your new home will be given to you and you are now, at this point, officially a homeowner.
More on The Mortgage Loan Application Process Simplified