The 3 Important Mortgage Documents You Will Sign
When you apply for a mortgage, you will sign a lot of documents, but there are some that are more important than others. Here are the 3 most important mortgage documents you will sign:
The HUD Settlement Statement.
The HUD Settlement Statement is the document that shows you and details the final versions of what costs you are paying on your home. This is an important document for you to sign because it means that you are approving these fees and agreeing to pay them. This is also an important document because you will be able to see whether or not the lender was able to stick to the GFE they provided you earlier.
The Promissory Note.
The promissory note is the document that actually lays out the repayment terms of the loan and how much you will owe on a monthly basis. This note also will detail whether or not you will face a penalty if you pay off the loan earlier than expected.
The Mortgage/Deed of Trust.
Depending on what state you live in, you will either sign the mortgage or the deed of trust. This document will detail whether or not you're allowed to use the home as a rental property or second home and at what point. This document essentially acts as the security behind your mortgage, so when you sign it, you're officially a homeowner!