This is How to Organize the Documents You Will Need For Closing

Just like with closing on real estate, you will also need to close on your mortgage closing. There are several documents that you will be present for closing on your mortgage. Here are some of the important documents that you will need to be aware of.

1. Deed of Trust. This document is crucial to your mortgage in a very big way. Signing this document will immediately allow your new home to be placed as a security. The security is in place to cover the debt of having a home loan in place.
2. Promissory Note. You will want to read over this document very carefully. It is essentially the agreement that is made and states that you will pay back the total amount of the home loan that you are borrowing.
3. Monthly Payment Letter. This is another document to pay close attention to. Every single detail of your loan will be broken down into parts. Look over this document carefully so that you will fully understand the amount you are to pay each month and what parts of those payments are interest and principal.
4. Lending Statement. Just before you make the final signature on your home loan contract, expect to receive a Truth in Lending statement. You may also hear this being referred to as “Regulation Z”. Basically, this document will explain every detail of the costs that you will owe with your loan. You will find your exact APR (Annual Percentage Rate), the total amounts for financing, and what your interest rate will be.

Paperwork Organization Tips for Homebuyers

Try to keep all of your home buying transaction files in one place. For the most possible convenience, try to scan everything and upload it to a folder in Google Docs or Dropbox as well. This way, when someone needs it, you can send a convenient link to the professional on the receiving end, avoiding multiple trips across town and/ or constant uploading. The free accounts should offer enough storage for the amount of paperwork you'll be going through.

How to Compress Real Estate Paperwork

If the files you're working with end up being too large to upload, here's how you can compress them from your computer and create a smaller sized .zip file.

Compressing Files on a Mac:

1. Locate the file or folder you want to compress.
2. You can select multiple files and folders by holding down the Shift key (for multiple items) or the Command key (for several individual items) and clicking.
3. After you've selected the files and folders, right click on them, and then select Compress.

Compressing Files on a PC:

1. Locate the file or folder that you want to compress.
2. If you have multiple files or documents to compress, place them into one file.
3. Right-click the file or folder, point to Send to, and then click Compressed (zipped) folder. A new compressed folder is created in the same location. To rename it, right-click the folder, click Rename, and then type the new name.