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What documents are involved in purchasing a home?

On Behalf of | Mar 9, 2017 | Real Estate

Once you found your dream house in Pennsylvania, the process to actually make it your own may seem time-consuming and tedious, at best. Even so, this is not the time to start rushing. The Consumer Financial Protection Bureau explains that there are a number of legal documents that you will need to study carefully before signing on the dotted line and starting to pack.

As a borrower, you are likely to be paying monthly mortgage payments for years, so you need to take every detail of your contract into consideration. This includes the mortgage instrument, a document that lays out your rights and responsibilities. You will also have a promissory note, which contains specifics such as how long you have to repay your loan, its interest rate and total, and due dates. If there is an option to change how much you pay monthly, this information will also be included.

You will have an escrow account from which the lender will pay insurance, taxes and other expenses, and the details about this account will be included in an initial escrow statement. Before you close, your lender is also required by law to provide a closing disclosure that includes what you can expect regarding costs and expenses that will be taken care of at the closing.

Government regulations at the local, state and federal levels have been put in place to protect you from unethical lenders, and they require certain documents, as well. These typically request information about the deal between the lender and borrower, and ensure that you are provided with all the elements relating to your loan. This general summary of real estate contract documents is for your education, but should not be considered legal advice.