Mortgage Application

• The first step toward buying or refinancing a home is to speak with a lender who will determine your qualifications. A mortgage application will give a loan officer permission to review your financial condition. Using information reflected on your mortgage application, a loan officer can determine if you meet the requirements for the type of financing you are seeking. A mortgage application displays your property address, employer's name, monthly income, assets, liabilities and your monthly expenses.
  
  

Mortgage Note

• A loan that extends financing toward the purchase or refinancing of real property is categorized as a mortgage. The lender and borrower have agreed to the terms of the loan, as the lender has offered to lend money, which the borrower has agreed to accept and repay. The mortgage note reflects the loan amount, loan term, interest rate and the due date. The grace period and late payment fees are shown within the mortgage note. Some mortgage loans have a fixed interest rate or an adjustable rate. The mortgage note will indicate whether your interest rate is fixed or adjustable.
  
  

Deed of Trust

• Securing a lender's interest against real property, a deed of trust enables the mortgage note holder to legally reclaim a home, land or commercial structure if the borrower defaults on the loan terms. The deed of trust often displays the borrower as the mortgagor and the lender as the mortgagee. The complete property address is reflected on the deed of trust, as well as the original amount of the loan. A deed of trust is typically recorded in the county courthouse where the property is located.
  
  

Settlement Statement

• Used to tally the closing costs and details of the settlement transaction, a HUD-1 settlement statement itemizes the costs paid by both the buyer and seller. Fees to obtain a mortgage are reflected on the settlement statement, such as underwriting fees, loan origination fees, processing fees, appraisal fees and home inspection fees. Your down payment, property taxes, loan amount and cash to the seller are shown on the settlement sheet.