Pre-Closing and Reviewing Documents

Getting To The Closing Table

As I look forward to an early May closing in just a couple of weeks for lovely  first-time home buyer clients, here’s a review of the final steps and documents needed to get to the closing table.

Closing or Settlement is the final step in mortgage loan application process. Buyers should anticipate having close contact with their lender to review the status of their file. Buyers will also be in contact with their real estate attorney for any final questions or explanations needed.

Required Documents to Review

It is important for the buyer to be aware of the documents that will need to be reviewed.  These include the Mortgage Note, the Deed of Trust and the Closing Disclosure. Buyers will review these documents in detail with their real estate attorney.

The Deed of Trust essentially confirms that the buyer understands the loan terms and promises to fully repay the loan amount. It also reiterates your right as a lender to foreclose the loan if the buyer fails to repay the loan amount.

By law, Buyers must receive the Closing Disclosure (CD) at least three days prior to closing.

This document specifies changes (if any) in the mortgage loan plan or interest rates since the start of the application. It also confirms the actual purchase cost compared to the estimated amount. The Closing Disclosure (CD) is an important document for all Buyers to review.

At this stage, the homebuyer will need to sign declarations confirming that he/she understands his/her obligations and rights as a homeowner. The closing disclosure is also signed.

Final Review and Signing

After reviewing everything, the process of property transfer begins. This procedure may vary across different states. You can check laws to ensure compliance.

After these documents are reviewed, signed and the lender (if there is a mortgage involved) will do one final review of all of these documents. Once the lender signs off on this, the funds will be dispersed.

Congratulations!

Finally, the keys are handed over to the buyer. All of your hard work and patience have paid off!