For nearly 25 years, our independently owned title company has leveraged technology to streamline the closing process, providing top-notch service at a competitive price for buyers, sellers, agents and lenders across the District of Columbia, Maryland and Virginia.
Often imitated but never replicated – we set the bar other title companies aspire to reach.
Buying a home is likely the biggest purchase you’ll ever make. It’s both exciting and daunting – especially when you start reviewing all the mortgage paperwork. As you get closer to closing day you’ll be inundated with sample mortgage loan documents from your lender. Don’t worry I’ll explain what they are, why they’re needed, and provide tips to make the home buying process smoother.
What Are Mortgage Loan Documents?
When you apply for a mortgage, the lender will provide you with a stack of paperwork to review and sign. These are called mortgage loan documents and they formalize the agreement between you (the borrower) and the lender.
There are a few key mortgage loan documents you’ll see
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Loan Estimate – Provided when you first apply, it outlines the loan terms, projected payments, and closing costs
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Mortgage Note – This is your promise as the borrower to repay the loan under the agreed terms.
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Mortgage/Deed of Trust – Gives the lender rights to the property if you default on the loan.
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Closing Disclosure – A final accounting of the loan costs provided before closing.
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Promissory Note – Further promises to repay the mortgage as outlined.
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Deed – Transfers ownership of the property to you.
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Truth-in-Lending Disclosure – Outlines the annual percentage rate and total finance charges.
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Settlement Statement – Itemizes all closing costs for buying the home.
Why Are Loan Documents Important?
Mortgage loan documents protect both you and the lender. For you, they spell out the specific terms you’re agreeing to for repayment. This includes the interest rate, total loan amount, monthly payments, and more.
For the lender, the paperwork minimizes their risk when providing such a substantial loan. The documents give them recourse if you fail to repay the mortgage as outlined. This includes seizing the home and selling it to recover their investment.
Bottom line – take time to carefully review the paperwork to avoid surprises down the road. Don’t hesitate to ask your lender questions if you’re confused or need clarification.
Tips for Reviewing Mortgage Paperwork
Navigating all the mortgage forms can be overwhelming, especially if you’re a first-time homebuyer. Here are some tips to make the process easier:
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Compare the Loan Estimate and Closing Disclosure: These forms should mirror each other. If not, find out why costs changed.
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Watch for interest rate locks: Your rate should be locked for a set period. Verify this is reflected accurately.
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Review payment schedules: Confirm the payment amounts and due dates match what you expected.
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Check the escrow account: Make sure property taxes and homeowner’s insurance are accounted for.
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Read the fine print: Don’t skim past fees like origination charges and underwriting costs.
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See if discounts applied: Many lenders offer reductions for autopay, large down payments, etc.
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Clarify title insurance: This protects against claims tied to the property’s title. Shop rates if needed.
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Examine the deed: Ensure all buyers listed on the mortgage are on the deed to avoid issues later.
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Scan for typing errors: Double check your name, address, loan amount – everything!
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Keep copies: Save paper and digital versions of your mortgage loan documents for future reference.
What Documents Will I Need to Provide?
In addition to filling out the lender’s forms, you’ll need to supply documentation so they can verify your identity, income, assets, and employment.
Identification:
- Driver’s license
- Passport
- Social security card
Income/Employment Info:
- W-2s
- Recent paystubs
- Tax returns
- Written verification from your employer
Assets/Reserves:
- Bank statements
- Investment account statements
- Retirement account balances
- Documentation of gift funds
Property Info:
- Purchase agreement
- Home inspection report
- Appraisal
- Tax assessments
- HOA documents
Gather these in advance so you can swiftly provide them upon request. The quicker the lender gets what they need, the faster underwriting goes and the sooner you’ll close!
What Are the Steps in the Mortgage Process?
Now that you know what documents to expect, let’s quickly review the typical mortgage timeline from application to keys in hand!
1. Application – You’ll complete a loan application and provide background documentation to get pre-approved.
2. Processing – The lender will review your info, verify employment, order appraisals and inspections.
3. Underwriting – This is where your loan is evaluated for approval based on debt, income, credit score and home value.
4. Closing Disclosure – At least 3 days before closing, you’ll get your final loan costs.
5. Sign Documents – During your closing appointment, you’ll review and sign all the mortgage paperwork.
6. Funding – The lender will disburse the loan amount to the seller.
7. Get Your Keys! – Once funding is complete, you’ll get the keys and officially own your new home!
It’s a lot of steps, but worth it in the end. Being prepared with what documents to expect will help it go smoothly. Lean on your loan officer too – they deal with these forms daily and can clarify any confusing parts. Soon enough, you’ll have the keys in hand to your new home!
The NoteThe Note, sometimes referred to as either the Deed of Trust Note or Promissory Note, is the borrower’s promise to repay the loan. The note identifies the amount of the loan, the rate of interest, the term of the loan (e., 30 year, 15 year, etc.), the payment due dates, the grace period and late charges, prepayment penalty provisions, and other general default provisions.
- 4506T
- W9 (U.S. citizens, resident aliens)
- W8BEN (non-U.S. citizens, non-resident aliens)
For nearly 25 years, our independently owned title company has leveraged technology to streamline the closing process, providing top-notch service at a competitive price for buyers, sellers, agents and lenders across the District of Columbia, Maryland and Virginia.
- We are proud pioneers of creating a better closing experience for buyers, sellers, agents and lenders.
- Our instant REAL Credit™ for ordering settlement services online has saved our neighbors upward of $18 million to date.
- Our paperless, custom-built closing workflow software allows us to proactively keep customers in the know and avoid settlement surprises.
- Our free mobile app Close It!™ helps homebuyers and their agents better understand the complete cost to be paid at closing.
Often imitated but never replicated – we set the bar other title companies aspire to reach.
Legally binding documentsHere are samples of the
A three-day window is great for consumers who can use the time to fully review their documents, ask questions and gather funds and other items needed for closing, but the 72-hour window is firm.
This is your mortgage. The Deed of Trust is a lengthy document (approximately 7 to 12 pages) requiring the signature of all owners of the property for the purpose of granting a security interest. After closing, the Deed of Trust is recorded with a legal description as a lien among the land records and as a matter of public record for the purpose of securing the borrower’s promise to repay on the Deed of Trust Note/Promissory Note.
In addition to identifying the property owners, the loan amount and the term of the loan, the Deed of Trust generally describes matters that would constitute a default on the loan thereby giving the lender cause to commence a foreclosure proceeding against the property.