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The
"H.U.D. 1 Settlement Statement"
shows the receipt and disbursement of all monies
in the real estate transaction. The receipt
and disbursement of all monies in the transaction
are labeled under separate columns of "Borrowers
Transaction" and "Sellers Transaction".
The "First Payment Letter"
directs the purchaser to whom and where to send
the initial payment in the event the lender
has not sent you the payment coupons prior to
the due date of the first payment.
"The Deed" conveys
title to the property. It's like the "Car
Title" for the car. You should note the
type of conveyance you are receiving. Husbands
and wives normally take title to real estate
by "Tenants By The Entirety With The Right
Of Survivorship." This conveyance assures
both spouses that if either dies, it automatically
becomes the property of the surviving spouse.
It is interesting to note that individual purchasers
can obtain title to real estate that excludes
ownership of all present and future spouses.
The "Deed of Trust"
is the loan agreement used in Virginia. This
legal document is normally several pages in
length. It explains the terms and length of
the loan. It goes into detail about when the
payments are due and what happens in the event
of a delinquency or default. Believe it or not
Virginia does not have mortgages.
The "Boundary Line Survey"
shows the location of any house, outbuilding(s),
driveway, property lines, set backs, encroachments,
easements, etc.
The "Lender's Loan Commitment Letter"
and "Lender's Rate Lock-In Letter"
are signed by the purchaser(s) accepting the
lender's loan offer.
The "Purchasers' Loan Application"
is signed. This is a duplicate of your original
loan application, but this has been typed and
modified as needed.
"Internal Revenue Service Form
W-9" enables the lender to report
the annual interest collected to the I.R.S.
"I.R.S. Form 4506"
enables lenders to randomly confirm the accuracy
of the borrower's tax returns that were provided
at time of loan application. Many attorneys
advise their clients to limit this permission
for a period of time not to exceed six months
from closing.
The "Same Name Affidavit"
shows the names you have used in the past for
credit, etc.
The "Loan Servicing Letter"
is the lender's disclosure to you of the percentage
of loans they originate and keep as compared
to the percentage of loans they originate and
sell to other companies.
The "Truth in Lending Disclosure"
documents the principal and interest payment,
interest rate, A.P.R and total amount of interest
paid over the life of the loan.
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