{"id":19519,"date":"2020-10-15T08:20:25","date_gmt":"2020-10-15T15:20:25","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=19519"},"modified":"2021-12-15T15:02:54","modified_gmt":"2021-12-15T23:02:54","slug":"buyer-mortgage-agreement","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-mortgage-agreement\/","title":{"rendered":"8 Key Components You Can Expect To See In Your Mortgage Agreement"},"content":{"rendered":"

You know you want to buy a home, and that getting a mortgage<\/a> is likely a necessity. But you probably haven\u2019t spent a lot of time thinking about the documents<\/a> and contracts you\u2019ll have to sign to get it.<\/p>\n

Sure, you know you\u2019ll need to fill out a whole host of forms, and sacrifice a portion of your income for the next 30 or so years to pay off your new home. But how exactly does a mortgage become legal? And what gives your lender the authority to foreclose<\/a> on your home if you stop paying?<\/p>\n

Enter your mortgage agreement, more commonly known as your mortgage documents. Your mortgage documents will include a couple of key contracts you\u2019ll sign with your lender at closing that set the terms for your home loan.<\/p>\n

By now, you\u2019re probably feeling a bit overwhelmed picturing yourself sifting through hundreds of pages of legalese on closing day. But let\u2019s take a deep breath and walk through this thing step by step.<\/p>\n

We enlisted Jessica Sanchez, Director of Underwriting & Loan Management at HomeLight Home Loans, to talk us through the basics on mortgage documents. Here\u2019s what you need to know.<\/p>\n

\"Meet<\/a>
Source: (fizkes \/ ShutterStock)<\/figcaption><\/figure>\n

What\u2019s a mortgage agreement (also known as your mortgage documents)?<\/h2>\n

When you get a mortgage, there are two major contracts that make up the bulk of your mortgage documents: the mortgage note<\/b> (the terms of your repayment) and the security instrument<\/b> (the terms of the property\u2019s ownership, usually called the Deed of Trust or the Mortgage).<\/p>\n

You need to sign and follow both, or your home could be at risk of foreclosure.<\/p>\n

The mortgage note<\/h3>\n

If you\u2019re buying a home and using financing, a mortgage note comes along with the deal.<\/p>\n

\u201cThe mortgage note is going to spell out all the details of how you as the buyer are agreeing to repay that mortgage,\u201d Sanchez explains.<\/p>\n

\u201cIt\u2019s a promissory note, so as a buyer, when you sign that mortgage note, you\u2019re agreeing to the repayment terms of that loan.\u201d<\/p><\/blockquote>\n

What\u2019s included in a mortgage note?<\/h4>\n

Your mortgage note will include some key information from your lender: namely, the details of your loan and how you\u2019ll repay it. Here are some of the major elements you can expect to see in the agreement.<\/p>\n