A homeowners’ association (HOA) is typically formed to manage shared expenses such as landscaping and other maintenance costs for a planned subdivision or other organized community. Condominium HOAs take on the responsibility for items such the maintenance of public space, driveways, shared structures, and roofs. Homeowner's insurance Lenders require homeowners' insurance so that the property they have an investment in is fully covered against catastrophic damage. The lender also wants to make sure that, as the borrower, you’re financially capable of paying down the mortgage in the event that the home is destroyed. Lenders generally require proof of homeowner’s insurance before clearing your file to close. Intent to Proceed The "intent to proceed" evidences that you are interested in obtaining a loan from that particular lender. It does not commit the prospective buyer to get a loan from that lender. It simply states that you have signaled intent to proceed with the lender’s loan process under the terms described in the loan estimate. Lenders title insurance Lender’s title insurance protects your lender against problems with the title to your property-such as someone with a legal claim against the home. Lender’s title insurance only protects the lender against problems with the title. To protect yourself, you may want to purchase owner’s title insurance. Loan estimate A Loan Estimate (LE) is a three-page form that you will receive from the lender within three business days of applying for a mortgage. The form provides you with important information, including the estimated interest rate, monthly payment, and total closing costs for the loan. The LE also shows the estimated
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