At TERRA, we want to make sure you have a clear understanding of the financial journey when it comes to your new home.
Below is a list of things that you will definitely need:
Before shopping for your new home, you will want to:
Once you have completed and signed the loan application, your lender will:
Once you have signed a Purchase Agreement for your home, your lender will:
Within three business days after you have completed the mortgage loan application process, your loan officer will provide you with a variety of documents outlining the costs associated with your loan. The most important of these include the Good Faith Estimate and the Truth-in-Lending Disclosure Statement.
After you are approved for the loan, the Good Faith Estimate (GFE) provides you with an estimate of your mortgage loan terms and settlement charges, which includes:
It is important that you read the GFE very carefully and review all fees with your loan officer. At this time, you can evaluate your mortgage application and even explore a few other possibilities before accepting it. You have 10 business days to accept the terms disclosed in your GFE.
You will also receive the Truth-in-Lending disclosure statement, one of the most important forms in the entire mortgage process, three days after completing your loan application. This document allows you to see the total cost of your mortgage under the terms of your mortgage loan, including:
You will also receive other forms and disclosures after being approved, but these are the most important documents concerning your related costs.
Closing or “settlement” is when you sign the final mortgage documents and the property will be legally transferred to you. It typically involves you and any co-borrowers, a closing agent, and your real estate agent. When preparing for the loan closing, you should contact your closing agent to determine how much money you will need to bring to closing and any other steps for completing the purchase of your home. You will sign many documents at closing and it is important that you read the documents carefully and ask as many questions as necessary.