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The closing will take place at the office of a title
company in your area who will act as our agent. If you are
purchasing a new home, the seller may also be at the closing
to transfer ownership to you, but in some states, these two
events actually happen separately.
During the closing you will be reviewing and signing
several loan papers. The closing agent conducting the closing
should be able to answer any questions you have or you can
feel free to contact your Loan Officer if you prefer.
Just to make sure there are no surprises at closing, your
Loan Officer will contact you a few days before closing to
review your final fees, loan amount, first payment date,
etc.
The most important documents you will be signing at the
closing include:
HUD-1 Settlement Statement
This document provides an itemized listing of the final
fees charged in connection with your loan. If your loan is a
purchase, the settlement statement will also include a listing
of any fees related to the transaction between you and the
seller. If this loan will be a refinance, the settlement
statement will show the pay off amounts of any mortgages that
will be paid in full with your new loan. Most items on the
statement are numbered according to a standardized system used
by all lenders. These numbers will correspond to the numbers
listed on the Good Faith Estimate that will be provided in
your application package. This document is also commonly known
as the closing statement and both the buyer and seller must
sign this document.
Truth-in-Lending Statement (TIL)
This document provides full written disclosure of the terms
and conditions of a mortgage, including the annual percentage
rate (APR) and other fees. It is exactly the same as the TIL
that you received immediately after your initial application,
except it has been updated to reflect the final rate and fee
information. Federal law requires that all lenders provide you
with this document at closing.
Note
This is the document you sign to agree to repay your
mortgage. The note will provide you with all of the details of
your loan including the interest rate and length of time to
repay the loan. It also explains the penalties that you may
incur if you fall behind in making your payments.
Mortgage / Deed of Trust
This document pledges a property to the lender as security
for repayment of a debt. Essentially this means that you will
give your property up to the lender in the event that you
cannot make the mortgage payments. The Mortgage restates the
basic information contained in the note, as well as details
the responsibilities of the borrower. In some states, the
document is called a Deed of Trust instead of a Mortgage.
If your loan is a refinance, Federal Law requires that you
have three days to decide positively that you want a new
mortgage after you sign the documents. This means that the
loan funds won't be disbursed until three business days have
passed. The closing agent will provide more details at the
closing. | 
Closing & Beyond
