Optional Documents and Disclosures
In addition to the required documents mentioned earlier, most lenders require some or all of the following documents and disclosures to be signed:
· Signature affidavit: This document verifies the borrower’s current signature and any signatures associated with any previous names used, such as a woman’s maiden name.
· Transfer of servicing disclosure: This document outlines the lender’s right to sell the loan to other parties as well as the servicing of the loan. That is to say, if Mortgage Company A sells the loan to Bank B, the borrower will be making her payments to Bank B, not to Mortgage Company A. Any customer inquiries, payoffs, or any other correspondence regarding the loan will be handled by Bank B after the sale.
· Occupancy affidavit: This document certifies the borrower’s intent to occupy the property as a primary residence, second home, or investment property. Some loan programs require this as a condition of the loan.
· First payment coupon: Many lenders include the first payment coupon, in case they don’t have the loan properly processed by their servicing department in time to mail the first payment’s statement.
· Initial escrow account disclosure: This disclosure outlines the proposed escrow disbursement for the first year, if applicable.
· Affiliated business arrangement disclosure: This disclosure identifies any required or affiliated service providers.
· Final loan application: This is the same loan application signed at the beginning of the transaction, with all final figures included.
Deed: A deed transfers the title from the seller to the buyer. This deed is recorded with the county and becomes public record.
Proration agreements: Proration agreements describe how the buyer and seller are sharing the payment of certain costs. For example, let’s assume that the seller has paid the real estate taxes for a period that is two months beyond the closing date. In this instance, the buyer will reimburse the seller for the two months.
Tax and utility receipts: Tax and utility receipts acknowledge that taxes and utility payments owed on the property are paid and up-to-date.
Name affidavit: Name affidavits verify the identity of the buyers and the name under which the title will be held.
Acknowledgment of reports: Acknowledgment of reports ensures that the buyer has seen all of the reports regarding the property. These can include surveys and a termite inspection.
Search or abstract of title: Search or abstract of title provides a written summary of every document that has been recorded about the particular piece of property.
Today is a good day to get started, let’s embark on this exciting journey together. Reach out to Ashe County Realty today, and let our experienced team guide you through the real estate market. Whether it’s a cozy cabin in the mountains or a charming home in town, we will help you find the perfect place to call your own.
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