- Note (“IOU”)
- Deed of Trust (“Security Agreement” or “Lien Doc”)
- Grant Deed
- Lending Instructions
- Escrow Contract Amendments
- Closing Disclosure (CD)
is like an IOU from the borrower to the lender. It is a written promise from the
borrower to pay the bank back under the terms of the indicated (typically with interest over a
period of time).
The Deed of Trust
is the security instrument, it places a lien on the home to protects the bank.
It gets recorded with the county. It protects the bank from a borrower running off with a large
sum of money without consequence. If a borrower doesn’t pay the loan back or take care of
home responsibilities like paying taxes, the bank may exercise on it’s right to foreclose on the
are most often addendum to the deed of trust (or note) to indicate a variation or
update within the general terms of the document it is attached to. For example, a deed if trust
may have a Planned Unit Development Rider (PUD) to show that the home falls within a
homeowner’s association and is subject to its rules. The deed of trust riders are attached and
recorded with the deed of trust.
The Grant Deed
is the document signed by the seller to grant over the home to the new buyer.
This document is held by the escrow company until the home is paid for according to the terms
of the contract. It is recorded with county.
The Lending Instructions/Conditions
are loan document instructions for the drafting and
processing of a successful loan transaction. These instructions include conditions from
homeowner’s insurance, to paying off credit cards, to the need for exact signatures on the loan
documents. These instructions help everyone in the process carry out the terms of the lender.
Escrow Contract Agreements
or Addendum are often found within atop the closing
documents to satisfy the escrow’s contractual paperwork, transactional details between parties,
The Closing Disclosure
is a government instituted mandatory form that provides full
disclosure of the costs, loan, rate, and terms within a loan transaction. It is provided continually
throughout the process to provide full disclosure to the borrowers of loan terms in an easily