A home inspector in Houston begins his journey to look at the paperwork involved in buying a home.
This article is just to introduce the topic, and to remind readers in other states that I will be dealing with generalities (or at least what I believe are generalities) about mortgage paperwork and the paperwork at closing. Some information here is similar to what was presented above, but I wanted to go over other details here. Each state, lender, and title company will have their own rules in regards to paperwork, but the basics remain the same across the country. I will not be going into terminology or differences in mortgages types, since I already have that on this site. My goal is to prepare you for comparing different mortgage estimates, understanding some papers that you will have to sign in relation to the loan, and what kind of paperwork will come up during the closing. I have found that loan officers are good about answering questions when they arise, but you should not be ashamed to ask. This is the biggest investment that you will make, so you need to understand what it is they are saying. I have also found that your Realtor can be of great assistance to you during closing. They have been through this before, so trust them to guide you.
There are several good sites and blogs that deal with mortgages. I have a links to a blogs on my own blog which you may find useful. I want to give you another perspective on this topic by giving you these links. When doing my research on credit, I found a lot of useful information on the E-loan and Credit.com sites. I had heard of them, but I had no reason to go to their sites, until I was doing my research. I have since signed up for their newsletters, which are interesting.
With a little effort in phrasing your search terms, you can find a great deal of information on your own.
Before we start delving into the topic properly , I wanted to mention mortgage fraud. Most lenders that you will encounter are honest people trying to do their job, but there is always someone out there ready to scam you, so you should be aware of these practices. The National Association of Realtors has some brochures on fraud available at their website.
There is also a site where professionals in the real estate industry report schemes that they are seeing. Mainly the information here comes from appraisers. The site is called MortgageFraudWatchList.org. Some states have been currently enacting laws to prevent some of these schemes. For example, Texas has a new law which will go into effect in January 2008, that will force people who are trying to unload houses with liens on them to report this fact within seven days of the sale. You can find out about your state’s laws by going to the state website and typing in real estate or mortgages in their search engine, but you will have to do some digging. Realtors are usually up to date on many of these laws.
Take these parts as cairns along your way, and take the time to explore what others have written. I can tell you from experience that you can easily be overwhelmed, so the more you know going into this process, the better you will handle it.