Home Related Documents that you need to have
If you want to buy a new home in the US, then know about home related documents that you need to have to buy the home you want. The documents are as follows:
1. Preapproval letter
A pre-approval letter is an important document that has the amount pre-approved for the mortgage you have been allowed. A pre-approval letter is of considerable significance to those who are homebuyers. This document is evidence of how stable or unstable you are, as per your financial conditions.
2. Offer letter
An offer letter is a letter where the buyer writes all the necessary points and needs that he wants to propose to the seller before buying the house for documentation purposes. An offer letter is a formal letter with the informal content where the buyer can explain why he liked that house and why the seller should sell him that house.
3. Loan estimate
A loan estimate is a form that the lender lawfully sends you for the loan. This document is proof that you have applied for a loan. It reveals the rate of interest, payment schedule of mortgage, all details regarding the tax, and the costs of insurance. It also includes closing costs and the possibility of penalty.
4. Purchase agreement
A purchase agreement is a contract signed by both parties to make a deal in buying or selling the house with necessary terms and conditions. Moreover, it is crucial as it includes details about buyer and seller identity and the description of the property along with the location.
5. Home inspection report
This is a report that contains all the tits and bits regarding the house. The inspection of everything is done, including the exterior, foundation, fixtures of the bathroom, and electric systems.
6. The home appraisal
The home appraisal is a document that is focused on the specific condition of the home. Also, the home appraisal document is one of the essential documents for the approval of the mortgage. The lender prepares it.
7. Title search
The title search is the process where the buyer finds out that the title of the property belongs to the seller. If not, then he should cancel the contract as this is a fraud. Only the one who has the title of the property can sell it; no one else.
8. Cashier’s check
Cashier’s check is the document that is needed the most to close the deal of home sale. Without this, the deal will not be closed. It is the only document that grants funds.
9. Closing disclosure
The Closure Disclosure form has five pages. It is similar to a summary of every detail that the loan approval requires. It also has an interest rate, mortgage payments, penalties, and costs.
10. Homeowners insurance declaration page
The summary of the insurance coverage is fully mentioned in this document. A mortgage lender needs this document during mortgage approval.
11. Property survey
A property survey is the survey of the property that the buyer is buying. It is essential for him to have the idea of the property inside and out and to assess the boundaries.
