What Is A Mortgage Note And Why Is It Important?

May 14, 2024

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An elderly couple possibly looking at property or mortgage paper.

Understandably, there’s a lot of paperwork and documentation that’s involved in the home buying process. One document that’s important to know about is a mortgage note. A mortgage note is the document that you sign at the end of your home closing. It should accurately reflect all the terms of the agreement between the borrower and the lender or be corrected immediately if it doesn’t.

Knowing exactly what a mortgage note is and how it works can help you feel better prepared for the home buying process.

What Is A Mortgage Note?

A mortgage note is a legal document between a lender and home buyer that provides a description of the mortgage. It states important information pertaining to your mortgage, including the monthly payment amount, the loan terms and any penalties that can be assessed. It also states the property is being used as collateral for the loan.

Once the mortgage note is signed by both the lender and borrower, it becomes legally binding.

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