There is a lot of documentation involved when it comes to purchasing a residential property. Not to mention the risk of potential mistakes that can be made within all those pages…it can most certainly be a little intimidating. 

Not to worry, when it comes to Cape Coral new homes and working with the Carney Team in Cape Coral, FL, you’re in great hands because you’ve got a squad on your side who will take care of the work and provide you with a piece of mind. 

John Carney’s unrivaled attention to detail, uncompromising devotion to quality, and care for our valued customers have become the foundation of all Carney Company culture. 

This is why we are providing you with seven important documents involved in buying a residential home that you should be aware of and pay close attention to.

Preapproval letter

This is a document from your lender of choice that explains the mortgage amount you’ve been preapproved to borrow. This is one of the first documents you need before you start shopping for a house because it shows that you’re serious about buying and that you have the financial ability to make the purchase. 

To get prequalified, you provide the lender with an estimated overview of your credit score, income, debts, assets, etc. You can easily complete this online and obtain your pre-qualification letter within minutes. 


Loan Estimate

This form is sent to you by your lender within three business days after your loan application is received. It is a complete financial breakdown of the loan that was applied for. It will indicate everything you’re pledging to if you agree to the loan terms. This includes:

  • Estimated interest rate
  • Monthly mortgage payment
  • Estimated tax and insurance costs
  • Scheduled rate or payment changes
  • Estimated closing costs

Offer Letter

This document is optional, but if included, it has the potential to get you the house you want… or not. This is a letter to the sellers explaining why you want to buy the property. This letter should include personal information about who you are and why you are a fan of the house. This can be a great way to make connections with the seller in a more personal manner. Keep common interests in mind during your showings that you could include in the offer letter. The purpose is to bond with the seller so they choose your offer over any others.

Home Inspection Report

This report is a detailed list of the condition of the house. This may include:

  • The foundation
  • The appliances
  • The roof
  • The plumbing
  • The electrical systems

A home inspection report is frequently written into purchase agreements as it allows the buyer leverage and a way out if the condition of the home isn’t up to standard.

Purchase Agreement

This document is signed by both the buyer and the seller. It formalizes the purchase and commits both parties to the terms of the contract. This document is usually created by the seller’s agent and breaks down all of the financial terms into detail. 

Home Appraisal 

The home appraisal focuses on the property’s value in the current real estate market. This document is important to the approval of your mortgage. This is why the lender is the one who usually arranges the appraisal. In order for a mortgage lender to sign off on your home loan, the property’s worth first needs to be determined and verified. If the appraisal discovers that the property is valued less than what you’ve agreed to pay, you’ll use this document to negotiate a lower sales price.

Closing Disclosure 

The Closing Disclosure is a five-page form provided to you by your mortgage lender. This document details the terms of the loan. The information in this document is the same information that is in the Loan Estimate. However, it is more detailed. Information in this document usually includes:

  • Estimated interest rate
  • Monthly mortgage payment
  • Estimated tax and insurance costs
  • Scheduled rate or payment changes
  • Estimated closing costs

The key difference between the Loan Estimate and the Closing Disclosure is the Closing Disclosure gives you the final numbers, rather than an estimate. You should receive this document three business days prior to closing on the house. This will allow you to review the terms of the mortgage.

We know buying a home can be overwhelming, especially when you consider the endless amount of paperwork involved in the process. Thankfully, you’ll be able to stay on top of all these important documents with this breakdown of the paperwork and with the help of a great agent. If you’re considering buying a residential property in Cape Coral or a new home in Fort Myers, contact Carney Construction today, Cape Coral Home Builders, and let our team help you in finding the right house for you and your family to call home.