Keeping Track of Loan Documents

Are you Aware of how Crucial Loan Documents are to the Successful Real Estate Sale?

Buying a house is one of the most exciting times in your life. It’s also quite possibly when you’ll be borrowing the largest amount of money. In other words, it’s a really big deal. It doesn’t matter if you’re a young couple with little money buying a small home, or a billionaire buying the third or fourth of a number of homes, there are always many loan documents involved.

Each state, including Arizona, has requirements for specific loan documents, although they are fairly uniform. Every person who is planning to purchase a home must be ready to fill out tons of paperwork and be familiar with the glossary of mortgage terms. I know all of these loan documents and an even more important fact is that I’ll find you the best mortgage for your individual requirements.

Of all the major loan documents, the 1003 form is the most important in the process of buying a house. This is the actual application for the mortgage. It has many questions and requires a lot of back-up documentation. Documents you should be ready to supply are identification, employment records, immigration status if required, tax records, proof of ownership of present home and other assets. All lenders are concerned with how much you earn each month as opposed to how much you spend. We’ll also be checking out your credit report. It’s really important for you to be thorough and fully disclose every detail of your financial life. My job is to help determine how much you can borrow without getting bogged down in a financial disaster. It also helps determine the interest rate you’ll qualify for.

The term “closing costs” is something we hear a lot in real estate. Borrowing money isn’t free, and in addition to interest, there are other fees involved in applying for a mortgage. There is another loan document that you should receive your copy of within three days of your application. It tells you how much it will cost to close the loan process and actually take possession of your new house. I’ll help you go over this document until you have a solid understanding of a good faith estimate. Part of my job is to find the lowest closing costs available. This is a category where a lot of lenders throw in some extra fees that could potentially cost you thousands of unnecessary dollars.

Another important loan document is the truth in lending form or TIL. This spells out in detail exactly how much you’ll pay over the life of the mortgage. For instance it will show you how much the loan is for versus how much you’ll actually be paying back. There is a difference because of closing costs, mortgage insurance, interest, and any other costs that are added into the loan. There is a basic interest rate that you’ll pay, as well as the annual percentage rate (APR) which includes the additional costs mentioned.

Once you apply for your loan, there is a waiting period while we check out all the information you provided. It generally takes from thirty to sixty days. Once you’re approved, we’ll set up a meeting to actually transition the house from the seller to you. This is called the “closing” and the real estate closing documents are all signed at that time. It’s a time of both celebration and anxiety, especially if this is a first for either of you.

This whole process is more important to me than just signing up clients; it’s about being the best I can be and maintaining my excellent reputation in the market. Phoenix-Arizona-Home-Mortgage.com is here to ensure that your home buying or selling experience is actually fun!