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Prepare the Necessary documents Before You Buy a House

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By : Roby Hicks    99 or more times read
Documents are essential when your purchase a house. You will need to prepare some of your own to qualify for a mortgage. There are also essential documents that will be presented to you before you decide whether to borrow money from that lender or look somewhere else.

It is important that you prepare, request, read and verify documents especially when purchasing a house. Although they are just pieces of paper, they can tell you a lot about the property you intend to buy. They can also support your claim of ownership in the future and will make everything final. These are just few of the reasons why you need to make sure all the necessary documents are prepared before you make a purchase.

Documents you need when applying for a mortgage:

Lenders have similar requirements but there could also be variations. This makes it essential that you call your lender ahead of time and ask for their requirements. You can also acquire other information through phone like rates and terms.

Among the common requirements of lenders are identification cards or any documents that will prove your identity. You will also be asked to present your financial statements so make sure that you prepare those. Moreover, a certificate from your employer will also be needed. There are those who provide the form for the employer to sign. Prepare your pay stubs and tax statement too.

You will also need to authorize the lender to get a copy of your credit report. Your credit report is very important because the lender will use this to assess your application. If you have a good score, you will have better chances of getting approved with better rates and terms.

Good Title:

You will also need a good title for the property. This will be verified by a title company so make sure that you choose a competent company. The title company will take care of the Abstract of Title. This will indicate a short history of the property. This means that the title company shall investigate the different documents associated with the property. Records in the county where the property belongs will be investigated as well as other information relating to it.

Once everything is checked and all requirements passed, the title company will release either an opinion letter or a Commitment of Title Insurance. The latter will only be given if the title company will issue a title insurance. A good title will only be obtained if issues concerning the property have been resolved. There could be constraints and restrictions associated to it.

The title is very important. A good title shall protect the buyer from any claims of ownership in the future. This will be a proof that the buyer is rightful owner of the property.


There are also several documents needed during the closing. A closing agent will be tasked to prepare it, present it to the parties involved and have it signed by them. The transfer of ownership will only take place once all the parties have signed all essential documents like the Deed of Trust. Other documents like the Settlement statement and promissory note will be presented too.
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