What Is a Mortgage Statement?
What is a mortgage statement? A mortgage statement is a document that is given by the lender to the borrower. Just like credit card statement, a mortgage statement includes some information regarding your status of the loan. And some other like; monthly payment summary. It tells you how much money you have to pay each month for the loan. Amount and time remaining for the loan term usually also stated here. Late payments and overdue balances also listed in this section. Your loan information will also be likely in this mortgage statement. It tells you some important information of your mortgage, like account numbers, address and interest rate. There should be more sections and it actually depends on the lender of the VA loan, they could add a few more or just stating the most important sections for the mortgage statement. Which is the information of the loan, the due date of the payment, the annual report of the payment and value of the property.
Other than that, you will get a loan estimate and a closing disclosure. These documents have detailed information on your loan and lender due time for the payment. Keep a note that these documents are important and you will need to save these documents. There are several documents that you should keep safe so it will not give you problems should you lost it.
The IRS, or Internal Revenue Service requires borrower or lender to include annual mortgage statement for tax deduction matter. Nowadays, thankfully, access to these documents is easier due to advancement of technology. You could just access them online and print it for as soon as it is available. You do not have to wait to be sent the e-mail or mail it to you.
Now, these are the usual documents that they include in a mortgage statement. Note that it might not be included in your mortgage statement, but these are the usual suspects.
Firstly, you will have a documentation for audits. If you are buying a home and paying off your mortgage, it should have tax implications. It is important for you to keep this one, as it has significant portion of the mortgage program.
Secondly, scheduling maintenance. These will state the condition of your house. It will tell you what needs to be repaired or replaced. If for example an inspection stated that your house needs a maintenance on the wall, you will need to replace or repair the wall so it will not fall off.
Third, the accurate mortgage. As stated above, it will have detailed information how much you already paid off and how much you still owe for the payments. Some lenders, not all, will likely charging an extra payment into the next period balance instead of directly going into previous period. So, you will need to keep an eye for these reports and act before more interests piling up.
Now, you should take ahold of these documents on a time period. Like monthly payment summary, you just need to make sure the balance is correct and there is no miscalculation on the report of the month as it is a monthly report and will get outdated quickly. As for the disclosure, you might want to keep them as long as the period of the loan, this will likely be needed by the time of the loan end and you might want to refer to this closure to review and double check any mistakes before you close the loan period. Pay attention to any miscalculations, mistakes, errors as it might harm your next period of the loan. Do not just wait until the lender side fix it for you, you might be able to help yourself if you found any miscalculations, mistakes, or errors early, as it needed to be fixed immediately.
It’s better that you keep ahold of these documents for a period of time. Make sure that all your payments each month are accurate and accounted for. Moreover, you might want to keep an online copy to save it on online cloud and also keep in somewhere safe like a safe deposit, so that you will not have problems when things happen unpredictably. Because if any document is lost, you will have a big problem to double check or to review it when the loan period has come to the end. These are valuable information for you, losing it will not only wasting your time, but your effort as well in regards to finish your loan repayment.
Now, there is another method of a mortgage for buyer of a property if they want to do something quick on the agreement of a loan that they had, but did not want to do another process of refinancing or other method by VA loan or conventional loan. It only involves the buyer and the seller of the property, not with the lender of a VA loan or conventional loan system. It is named wraparound mortgage.
A wraparound mortgage is a secondary type of mortgage financing that includes or wraps the existing amount that is owed by the borrower. The existing amount of debt or loan that is owed by the borrower to purchase the property via VA loan or another conventional loan cannot be paid completely, then a wraparound is done by adding the unpaid remaining debt or loan owed by the borrower to the wraparound mortgage but still adding additional fees from the seller directly into the existing agreement. It means that the buyer will directly pay to the seller, often with higher interest rate.
Wraparound mortgage usually happen when the buyer cannot purchase the property with other mortgage agreement, often wraparound mortgage is done because the seller is looking for a quick profit from the buyer. Note that wraparound mortgage is different from the usual VA mortgage or any conventional loan, where the lender provide the loan to the buyer as agreed on the loan agreement. Now, the seller of the property takes the role of the lender, thus, the transaction is between the buyer and the seller directly.