The full explanation
It is separate from the mortgage or deed of trust, the document that gives the lender the right to take the home if you do not pay. Some terms, such as a prepayment penalty, may be in an addendum to the note. You can ask for copies of the documents before closing to review them.
An example
A week before closing, Adriana asks the lender for a copy of the note. She reads it carefully and confirms the rate and term match her Closing Disclosure.
You will see it in…
- The documents you sign at closing (“Note”)
- Addenda to the note (“Addendum to the Note”)
- The closing package you can ask for in advance
