The Promissory Note
this is the legal document that states how much you are borrowing andunder what terms. It will show the interest rate, the length or term, the date payments startand end, where the payments are to go, and how much the principal and interest paymentsare. It will list actions considered to be violations and the penalties for such actions. The lendercould require full payment of the loan for a violation. Some promissory notes may list a penaltyfor pre-payment of the loan and you should be aware of that time frame and the amount of thepenalty.
the legal document pledging the property as collateral on the loan. It stateswhen the lender can repossess, or foreclose, on the property. If the lender must repossess andresell a property to cover their loss, the original borrower may still be liable for any amount duethat is not covered by the property resale.
this is the document that discloses the full cost, terms, andconditions of the loan. It will show the Annual Percentage Rate or APR and any other fees. TheAPR is the true annual cost of the loan, including the interest and any upfront costs paid atclosing. This amount allows you to compare the cost of one loan to another.
the legal document that conveys, or transfers, ownership from one party toanother. It will show the full legal description of the property, the name(s) of the seller(s) andthe name(s) of the buyer(s). The deed is usually drawn up, notarized and delivered to theclosing by the seller.