Don’t ignore these mortgage documents

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04/08/2016 | Author: Editorial Staff

The homebuying process contains many moving parts and lots of paperwork. It’s hard to keep up with all the decisions and demands on your time. But when you start applying for a mortgage, there are two documents that you should pay special attention to: the Loan Estimate and Closing Disclosure.

The Loan Estimate

This is a three-page document that you’ll receive from your lender no more than three business days after receiving your loan application. It provides important details about the loan you’re trying to get, such as the estimated interest rate, monthly payment, and total closing costs for the loan. The Loan Estimate also tells you about the estimated costs of taxes and insurance, and how the interest rate and payments may change in the future.

At this point, you haven’t been approved for anything. It’s just a summary of what you’ve applied for and how much it’s going to cost. Once you have been approved for the mortgage loan, you can look forward to receiving the next important document.

The Closing Disclosure

This five-page form provides final details about your loan. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage. You’ll get the Closing Disclosure at least three days before closing on your mortgage loan. Use this time to review the terms and costs and make sure they are correct.

For guidance on these documents and others related to the homebuying process, talk to your REALTOR® and mortgage lender. 

Categories: Buyers
Tags: closing, buyers, mortgage


Candy Cargill on 04/08/2016

I send this e mail out to everyone, or if they don’t do e mail, copy, paste it and mail or put it their hands myself.
I think it may help a little bit.

Good Morning/Afternoon,

I have received the contract, all signed!  Yippee!  I will date it today, so the clock starts running on the option period, that will make it end Month, Day, Year, by my counting; correct me if I’m wrong.  I’ll be taking it to ABC Title Company as well as the earnest money check, they will deposit it and start working.  I am providing them the Lender contact information, so they will be getting copies of everything, too. 
This is to let you know what to expect after that.

I may have mentioned that have been some changes, so if you have done this before you will have maybe a couple of different forms to sign but some just look a little differently. If you ever have questions, please don’t hesitate to call me or ABC Title Company.  We couldn’t be in better hands than ABC Title!

1. Everyone will get a copy via e mail from ABC Title after they have receipted it (signed for the contract and money).
2. ABC Title will then to a search on the property to see what is of record that affects it.  This will all be put into the Title Commitment.
3. You will receive a copy of the Commitment, this will have the items of records, may have things that the Seller needs to do.
a. Getting a payoff in writing from the lender.
b. Any re-sale certificate from a subdivision HOA.
4.  In the Title Commitment it will have in BIG BOLD LETTERS that you will need a valid photo ID at closing.
5. What is a Title Commitment? Insurance?

The purpose of the title commitment is to provide the terms and conditions on which the title company will be issuing a title policy.  It is a commitment for title insurance.
Title insurance protects you, the buyer, from any lawsuit which may arise while you or your heirs have an interest in the property. The title company will either clear up the title problems for you, or it will pay for your losses.
The title commitment is delivered by the title company to the buyer, lender, seller, and real estate agents of the transactions, within 20 days after the Title Company receives a copy of the effective contract.
There are 4 parts, or Schedules, to the title commitment.
Schedule A (Actual Facts) contains specific information about the proposed transaction:
· effective date of the commitment
· proposed amount of insurance
· type of policy(ices) to be issued
· the name of the proposed insured(s)
· the person(s) in whom title is currently vested
· the estate or interest in land to be covered
· the legal description of the property to be insured
It is important to check this information and be sure that the information here matches the information in the contract.
Schedule B (Buyer Notification) contains a list of standard and specific exceptions that the title policy will not cover.  This is the section of the title commitment that addresses where other parties have any interest or control of the use of the property. The standard list of exceptions is found on the Promulgated TREC and TAR contracts, and they include things like, restrictive covenants and Ad Valorem Taxes which are never covered in a title policy.  The specific exceptions are items such as Easements, Building Lines, and Encroachments which vary according to the particulars of the property.
If you get something in the mail or an e mail from ABC Title Company, or any lender involved…OPEN IT!!!!
There may be a date sensitive document you have to return.
If it’s not   returned by a certain date…we start the whole closing process
over…we don’t want to have to do that!


We will keep everyone in the loop as to what is going on, what needs to be happening and who should do what.  Hoping to make this as smooth as possible.
If you have ANY questions, please don’t hesitate to contact me!

Thanks everyone,

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Legal disclaimer

The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on Any legal or other information found here, on, or at other sites to which we link, should be verified before it is relied upon.

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