House Papers: A Guide To Key Documents For Home Buyers

Buying a home can be overwhelming. Once you’re under contract and done with inspections, you might think you are good to go and the house is yours. But, closing day itself can be a lot to handle. There are a significant amount of house papers that you need to complete before and at your closing.

This could include the closing documents a home buyer should bring when closing on your home, documents a home buyer should receive after closing to document proof of ownership, and other papers from the home buying process they should hold on to in case there are legal issues after closing.

Buying a home requires lots of paperwork before and after closing. Learn about the different closing documents you need to bring, receive and keep.

What Documents Do I Need To Buy A House?

Your closing agents should specify which documents you will be required to show at closing. Typically, the home buyer should bring the following documents to closing:

• Proof of identity ­– This usually includes two forms of identification. Typically, one must include a photo (such as a passport or driver’s license) and the other must have your name printed on it, such as a Social Security card or credit card.
• Cash to close – Your lender will provide you with the exact amount of cash needed to close on your loan. This can usually be paid by cashier’s check or wire and isn’t actually in the form of physical cash.
• Proof of homeowners insurance – Most mortgages require homeowners insurance on any mortgaged properties and that needs to be arranged before you actually purchase the home. You will have to provide the declarations page of your new insurance policy to prove your insurance is ready to go.

What Documents Should I Receive After Buying A House?

As part of the conveyance process, home buyers should expect to receive documents that serve as proof of ownership. These documents may come from different sources, including the seller, the mortgage lender and the title company.

Property Deed

The property deed is a key document that proves a home buyer is the legal owner of a home. Home buyers may not receive the deed at closing. Instead, it may be mailed to the home buyer once the title transfer paperwork has been recorded. You may also need a certificate of occupancy if you purchased a newly constructed home.

Closing Disclosure

The Closing Disclosure details the terms of a home buyer’s mortgage agreement. The lender is legally required to provide the disclosure to the home buyer three days before closing. This document will break down the mortgage payment so you can preview the different elements and the total payment amount. You may want to bring their copy of the disclosure to closing to compare it to the final version.

Mortgage Note

A mortgage promissory note is different from a Closing Disclosure. The mortgage note is the legal contract outlining the terms of the mortgage loan.

It will include the following information:

• Total amount borrowed
• Interest rate charged
• Type of home loan used to purchase the property
• Repayment terms
• Penalties for late mortgage payments
• Procedures in case of mortgage default

Title Insurance Policy

The title insurance policy proves the home buyer’s title insurance agency performed a title search and found no record of liens or claims contesting ownership of the home. A title search can protect home buyers from competing homeownership claims that may emerge after buying a home.

Escrow Disclosure

This document outlines how the escrow account has been set up and whether it will cover expenses like property taxes, mortgage insurance, home insurance and homeowner association fees. Knowing what will and won’t be paid from escrow can help home buyers avoid missing important home-related expenses.

Homeowner Association (HOA) Agreements

A home buyer purchasing a home that is part of a homeowners association should get a copy of the HOA’s rules and regulations before or at closing.

Additional Documents To Keep After Closing

The following documents may or may not be present at closing, but the home buyer should keep them in case there are legal issues with the home sale after closing.

Buyer’s Agent Agreement

A buyer’s agent agreement is a contract between a home buyer and their real estate agent. The contract outlines the terms of the agreement, including its length, terms and who pays the commission. It’s important to keep this paperwork in case of a dispute between the home buyer and their real estate agent or brokerage or the seller’s agent or brokerage.

Purchase Agreement

The original purchase agreement and any additions, amendments or riders detail the agreement between the home buyer and the home seller. The home buyer should keep the paperwork in case they ever need to take action because they find that the seller didn’t meet the terms of the agreement.

Seller’s Disclosure

The Seller’s Disclosure details any issues with the home a seller is legally obligated to disclose. The home buyer should keep the disclosure if they ever need to prove the seller failed to disclose a problem they were legally obligated to communicate.

Home Inspection Report

A home inspection report details any issues found with the home. The home buyer may need it to substantiate any claims against the seller if they failed to make repairs they agreed to or disclose any issues.

The Bottom Line

There are many pieces of paperwork that go along with buying a home. Your lender should be able to walk you through the process, but if you were feeling confused and lost, hopefully this article helped you to feel more at ease. If you are ready to take the next step in your home buying journey, go ahead and start the application process online.