closing will take place at the office of a title company
or attorney in your area who will act as the lender’s
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
During the closing you will be reviewing and signing
several loan papers. The closing agent or attorney conducting
the closing should be able to answer any questions you
have or you can feel free to contact your Loan Counselor
if you prefer.
Just to make sure there are no surprises at closing,
your Loan Counselor 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
kit. This document is also commonly known as the closing
statement and both the buyer and seller must sign this
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.
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
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.
Will I need to have an attorney represent me at closing?
In some areas of the country it is very customary, and
sometimes required by law, to have an attorney represent
you at the closing. In other areas, attorneys are not
as common at a real estate closing. Please contact the
closing agent if you have questions about attorney representation.
By all means, we recommend that you have an attorney
at the closing if it would make you more comfortable
Can I get advanced copies of the documents I will be
signing at closing?
The most important documents you will sign at closing
are the note and mortgage, sometimes called the deed
of trust. Unless there are special circumstances, these
documents are usually prepared one to two days before
your closing. Other documents are prepared by the closing
agent the day before or the day of your closing. If
you would like copies of the completed documents to
be sent to you after they are prepared, please contact
your Loan Counselor.
Who will be at the closing?
The closing agent acts as the lender’s agent and
will represent the lender at the closing. However, your
personal Loan Counselor will contact you prior to closing
to talk about your final documents and to provide a
final breakdown of your closing fees. If you have any
questions that the closing agent can't answer during
the closing, ask them to contact your Loan Counselor
by phone and we'll get you the answers you need - before
the closing is over!
I won't be able to attend
the closing. What other options are there?
If you won't be able to attend the loan closing, contact
your Loan Counselor to discuss other options. If someone
you trust is able to attend on your behalf, you can
execute a Power of Attorney so that this person can
sign documents on your behalf. In other cases, we're
able to mail you the documents in advance so that you
can sign them and forward them to the closing agent.
We're sure to have a solution that will work in your
Can I make my monthly payments
with an automated debit from my checking account?
Automated monthly payments are available. At the loan
closing an automated payment application will be provided.
Simply return it at your earliest convenience to enroll
in the automated payment program.
If I apply, where will the closing take place?
Most lenders use a nationwide network of closing agents
and attorneys to conduct our loan closings. They will
most likely schedule your closing to take place in a
location that is located near your home for your convenience.
The lender will deliver the loan documents and wire
transfer your loan funds to the closing agent or attorney
prior to closing so that they'll have plenty of time
to prepare for your closing.