Key Mortgage Documents You Need in California

Purchasing a home or commercial property is one of the biggest financial commitments most people make. In California, understanding the mortgage documents involved in a real estate transaction is essential for avoiding delays, disputes, or legal issues. Here’s a breakdown of the most important mortgage documents you’ll encounter and why reviewing them with a qualified attorney is crucial.

Loan Estimate and Closing Disclosure

These documents help buyers understand the total cost of their mortgage.

Loan Estimate

Given within three business days of applying for a loan, this document outlines:

  • Interest rate
  • Monthly payments
  • Estimated taxes, insurance, and closing costs

Closing Disclosure

Provided at least three days before closing, this confirms final loan terms and costs. Compare it carefully with your loan estimate.

Promissory Note and Deed of Trust

These are legally binding documents that outline your repayment obligations.

Promissory Note

This document is your formal promise to repay the mortgage loan. It specifies:

  • The loan amount
  • Interest rate
  • Repayment schedule
  • Late payment penalties

Deed of Trust

California uses a deed of trust instead of a traditional mortgage. It gives the lender a security interest in the property and involves three parties:

  • The borrower (trustor)
  • The lender (beneficiary)
  • The neutral third party (trustee)

Escrow and Title Documents

These documents help protect ownership and outline property responsibilities.

Escrow Instructions

Details how funds will be handled and when documents will be released during the real estate transaction.

Title Insurance and Report

Verifies ownership history and protects against claims such as liens, encumbrances, or disputes.

Importance of Legal Review

Real estate transactions are legally complex and financially significant. Having an attorney review your mortgage documents ensures your rights are protected.

Legal Support Offers

  • Contract review and negotiation
  • Risk identification
  • Title issue resolution
  • Compliance with California real estate law

Understanding your mortgage documents is essential to a smooth real estate transaction in California. Before signing any paperwork, consult with Law Advocate Group, LLP in Beverly Hills to ensure your legal and financial interests are fully protected.

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