Buying a home comes with a lot of paperwork, especially when getting a home loan. It’s important to know what needs to be kept safe and what doesn’t need to be worried about. Below is a list of mortgage documents to keep on file.
The Deed of Trust
The mortgage deed of trust will become part of public record in the county your client lives in, but having a copy of it is important. The biggest reason is that it will be necessary if they decide to sell later on.
Homeowners Insurance Policy
While many insurance companies now offer apps that show proof of insurance, having a hard copy on hand can be helpful. This way your clients can verify their coverage and premium and refer to any changes they’ve made to their policies throughout the years.
Title Insurance Policy
If your client bought their home with a loan, title insurance is mandatory. This helps protect them as a homeowner in case there are any claims on their new house from a third party.
Your client’s lender requires an appraisal, and this gives them an unbiased opinion of how much their home is worth. If they refinance, they’ll likely want to have a new appraisal done to see the appreciation compared to their original appraisal.
Property surveys are done to determine or confirm land boundaries, such as the plot of land a home sits on, and any sub-surface improvements, like a septic tank or well. Surveys detail how a property is defined in an official, legal capacity. Rather than guessing where their property lines are, your client has a document that makes it clear.
A closing disclosure is given to your client when they’re clear to close – this five-page document contains the terms of the loan. Keeping this document helps if they choose to refinance later on, as they’ll be able to see the differences in their old and new loan easily.
This paperwork can confuse people because there are two separate notes.
1. The first is your client’s mortgage note which is given out in states that don’t use deeds of trust. It will lay out their ownership of the property and the terms of the loan.
2. The second note is a promissory note, which is the written agreement your client and the mortgage lender sign to ensure monthly payments are set up.
Not everyone loves the paperwork that comes with buying a home, and many opt to close electronically. But it is necessary to keep some mortgage documents on file just in case. Don’t hesitate to reach out to me to go over any details that might seem confusing.
Choice Mortgage Group
Choice Mortgage Group is dedicated to helping people improve their financial situations and create lasting memories through home ownership – one loan at a time. Our team of mortgage experts build customized solutions for each of our clients, based on their specific situations, goals, and objectives.
Specializing in residential mortgage lending for over 25 years, our programs include conventional and government lending, purchases, and refinances. We also offer portfolio lending for self-employed borrowers and borrowers with complicated tax situations.
South Florida is where Choice Mortgage Group started, and we like to call it home. We are devoted Florida Atlantic University Owls fans and are proud to be the official mortgage lender partner of FAU Athletics. We also support numerous other local organizations.
For more information about Choice Mortgage Group, visit www.choicemortgage.com.
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