What Should I Expect at My Home Closing?
The closing will usually take place at a lawyer’s office or title company. If you are buying a new home the seller may be present to transfer ownership to you but it is not required. At most closings, the buyer and seller do not sit in the same room together.
During the closing you will be signing several documents. Feel free to ask the attorney any questions you may have. Your mortgage originator will contact you a few days before the closing to make sure that that there are no surprises at the closing and will also review final fees, loan amount, first payment date, etc. You may also get a chance to review the documents prior to closing so you can have a list of questions ready and perhaps get them answered before the closing.
The most important documents you will be signing at the closing include:
- Note – This is the document you sign to agree to repay your mortgage. The note will provide you with 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 is called the rescission period. 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. Have further questions, do not hesitate to contact us.
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