You’re nearly finished with your home-buying journey. Some preparation and a basic understanding of the closing process will help calm your nerves during the process.
The closing process will take place at the office of a title company or attorney in your area who will act as your agent. If you are purchasing a new home, the seller may also be at the closing to transfer ownership to you.
You will be reviewing and signing several loan papers during the closing. The conducting closing agent, the attorney or your lender will be able to answer any questions you have during this time. Feel free to contact your lender in advance, if you have any questions leading up to your closing date.
Your lender will contact you a few days prior to the closing to make sure there are no unexpected surprises the day of your closing. They will review your final fees, loan amount, first payment date, etc. This is also a great time for you to ask any additional questions.
THE CLOSING DISCLOSURE
|The Closing Disclosure will be provided three business days before your closing. This document allows you to make sure the deal you were offered on your Loan Estimate is the deal you are actually getting before you sign and agree to the terms of your mortgage. If you have any questions or see any discrepancies, this also gives you a chance to ask your mortgage loan officer before signing on the dotted line.
The Closing Disclosure covers loan terms, projected payments, closing costs, any other costs associated to the loan, cash calculations to close, summaries of both the borrower’s and seller’s transactions, and any additional information about the loan.
|A note is the document you sign to agree to repay your mortgage. This provides you with all of the details of your loan, including the interest rate and the length of time you have to repay the loan. This also explains the penalties that you may incur if you fall behind in making your payments.
MORTGAGE / DEED OF TRUST
|Your mortgage document, also known in some states as a Deed of Trust, 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 your mortgage payments. Your mortgage document restates the basic information contained in the note, as well as details the responsibilities of the borrower.