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!

 

2015 Q3 and Beyond

2015 Q3 and Beyond

We’re currently in Q3, and there is a lot in store for the mortgage market in the next few months. In early 2015, we saw rates on conforming loans stay at right below 4%. Rates started rising in May and June. After the 4th of July, we saw a slight dip in rates once again. Undoubtedly, the rates have been affected by the recent turmoil in Greece as they voted against the EU’s bailout term conditions.

You may not understand how the events in Greece are affecting mortgages originated in the United States, so we’ll explain it for you. Essentially, the global investors are worried that Greece’s instabilities will cause turmoil in the rest of Europe, which will cause MBS to be purchased. This has caused the rates to dip back below 4%. One other factor is the fact that China’s stock market has plummeted.

Rates are always affected by both international and domestic factors, and the turmoil in Greece will certainly pay tribute to that. In the coming months, as Greece’s situation gets sorted out, there will be more clarity in terms of the mortgage industry.