What is the purpose of the deed of trust in a loan document package?
The deed of trust serves as a security instrument for the lender, giving them a legal claim to the property in case the borrower defaults on the loan.
What is the role of the promissory note in a loan package?
The promissory note outlines the borrower's promise to repay the loan, including the amount, interest rate, and repayment schedule.
What is typically included in the closing disclosure of a loan document package?
The closing disclosure provides a detailed breakdown of the loan's terms, including the loan amount, interest rate, monthly payments, and closing costs.
What is the function of the mortgage in a loan document package?
The mortgage is the legal document that secures the loan by pledging the property as collateral for the debt, protecting the lender’s interest in the property.
Why is the borrower required to sign the loan document package?
The borrower signs the loan document package to formally agree to the terms and conditions of the loan, including repayment, interest rates, and the pledge of collateral.
What is the significance of the initial escrow statement in a loan document package?
The initial escrow statement outlines the amounts to be collected for property taxes, insurance, and other escrowed expenses, providing transparency to the borrower about their monthly payments.