Home buyer documents explained

Here's a list, compiled by The Plain Dealer's Teresa Dixon Murray, of the documents that homebuyers typically are asked to sign. A few more may be required depending on your circumstances, lender and title company.

• Truth-in-Lending statement: One page, distinguished by the four big boxes at the top. Contains information such as your interest rate and whether it's fixed or variable, the amount borrowed, the amount of your monthly payment, any prepayment penalties, etc.
• HUD-1/ Settlement statement: Three legal-sized pages with a grid of lines. First page says Settlement Statement at the top. Second page says Settlement Charges at the top and HUD-1 at the bottom. Third page is just the signature page. These contain details of fees paid to the lender, title company, amounts escrowed, etc.) The fees should roughly match what was on your Good Faith Estimate you received when you applied for the loan.
• Note: Contains all of the details of your loan, including the interest rate, amount borrowed, late payment penalties, prepayment penalties, etc. This information should match what's in the Truth-in-Lending.
• Mortgage: Sixteen pages for a typical single-family home. Contains all of the details of your loan, including the amount borrowed, whether there's an adjustable rate or balloon payment rider, late payment penalties, prepayment penalties, etc. This information should match what's in the Truth-in-Lending.

• Standard Conditions of Appointment of Settlement Agent: Explains how settlement/closing agent will oversee money and transaction.
• Certificate of HUD-1 Settlement Statement: Attests that HUD-1 is accurate.
• Privacy notice: Grants the title company authority to share your information with third parties for marketing purposes. Many companies slip this by people because the form says they won't disclose personal information except as permitted by law. A company can disclose just about anything with your permission. A proper privacy notice should say that no information will be disclosed except as required by law, such as required by a court or for tax purposes. Unless you want solicitations and possible privacy invasions, you shouldn't sign anything that permits your information to be disclosed or sold except as necessary to complete the transaction or as required by law.
• Status of water/sewer accounts: Gives water/sewer departments permission to release account information to escrow agent/title company and authorizes the company to hold a certain amount in reserves until final water and sewer bills are paid.
• Commitment for title insurance: Explains conditions and issues regarding issuance of title insurance.
• Buyer receipt of title report: Indicates buyer received report.
• Acknowledgement of payment: Indicates when first loan payment is due and breaks down the amount of principal and interest, hazard insurance, taxes, mortgage insurance, etc.
• Notice of assignment, sale or transfer or servicing rights: Indicates whether and where loan is being sold to another company.
• Name affidavit: Certifies that person signing it is really the person named on documents.
• Pest inspection acknowledgement: Indicates lender received a report if requested.
• Employment certification: Buyer promises he or she is employed at the stated company and that income hasn't changed substantially.
• Condition of Property "As Is" Acknowledgment: Buyer acknowledges that neither the seller, the lender nor the title company will be held responsible for major repairs such as furnace, roof, etc.
• Status of Water and/or Sewer Account: Buyer agrees to take responsibility for future water/sewer bills.
• Waiver Request & Approval: Buyer acknowledges any encroachments and lender's certification whether they affect the property or value.
• Statement of Intent/Property Use: Buyer states whether he plans to live in the home as a primary residence, use it as vacation home or use it as investment property.
• Compliance Agreement: Promises to cooperate with lender and title company to fix any clerical errors, if necessary, and cooperate with sale of loan.
• RESPA Disclosure to Loan Applicants: Indicates whether loan is expected to be sold.
• Quality Control Release: Buyer agrees to cooperate with any future quality control review and authorizes re-verification of information if necessary for quality control purposes.
• National Credit Score Disclosure: Notifies buyer that credit scores were obtained from three major credit bureaus and discloses what those scores were.
• Uniform Resident Loan Application: Verifies information provided at time of loan application, such as income, assets and liabilities.
• Statement of Assets and Liabilities: Details assets and liabilities.
• Standard Flood Hazard Determination: Indicates what flood zone home is in, whether flood insurance is required or available.
• Appraisal Report: Lender may require interior appraisal or only exterior. Explains how market value was determined.
• Survey: Details measurements of structures, property, easements, fences, etc. (A good document to keep safe for future reference.)
• Form 4506-T/Request for transcript of tax return: This gives God-knows-who the authority to request a copy of any past or future tax return from you. If you had to provide a copy of tax returns (last year's, for example) as part of your loan application, it's OK to sign this as long as you fill in which year (2006). You should not give permission for other years or leave the years blank.
  If you did not have to submit a tax return as part of your application, you do not have to and should not sign this form.
• Form W-9/Request for Taxpayer Identification Number and Certification: Certifies that Social Security Number or Taxpayer Identification Number is correct.

© 2007 The Plain Dealer. Used with permission.