How to store house closing documents
Mortgage: This is a type of loan used to buy a home.Some go to your lender, while others pay third-party vendors like appraisers and attorneys. Closing costs: Closing costs are fees you pay when you buy a home.If you have 20% for a down payment, your LTV ratio is 80%. Knowing your LTV ratio helps you understand how much of your home you own in financial terms.
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Loan-to-value ratio: The LTV ratio is the relationship between the amount you owe on your mortgage (the loan) and how much your home is worth (the value).Any money you don't have for a down payment, you'll borrow by taking out a mortgage. Down payment: This is the amount of money you pay upfront.Each lender requires a different ratio depending on which type of mortgage you get. You want your DTI ratio to be as low as possible. Debt-to-income ratio: Your DTI ratio is expressed as a percentage, and it is the amount you pay toward debts each month, divided by your gross monthly income.A higher credit score usually lands you a better interest rate. The credit score you'll need to get a mortgage depends on your lender and which type of mortgage you get. Credit score: A credit score is a number that indicates how likely you are to repay debt, and the higher your score, the better.
How to store house closing documents how to#
Here is a list of terms to help you understand how to buy a house and what you're agreeing to when you sign each document.