Closing/Settlement Documents
Check In Early:
It’s a good idea to check in with your agent and whoever is administering the closing (a title company officer, or escrow/settlement agent) a few days before the scheduled appointment and make sure that all of the required documents are ready and available.
Problems are Common:
Unfortunately, it is not at all uncommon for documents to be missing, or wrong, and you don’t want to find that out when you’ve already gotten a certified check to cover the closing costs and taken the day off from work to go sign the papers.
Usually your agent (and sometimes the listing agent as well) will be watching over this process, it’s the best way they can make sure that the deal goes through (and that they get paid). But no one cares more about this deal than you do, so it’s good to know what to expect:
What to Bring:
- Certified check for the amount of the closing costs
- Your driver’s license or other form of identification (sometimes you need to provide two forms of id, please check with your title or escrow agent)
What They Prepare:
The escrow or title company agent should have two large packages waiting for you (one for you, one for them to distribute to the lender and other parties) that contain:
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Offer Contrac: accepted and signed
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RESPA (The Real Estate Settlement Procedures Act) Statement: requires the buyer sign this to acknowledge that they have been informed about how the closing process works in this area
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HUD-1 Settlement Statement: itemizes all of the funds payable at closing
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Truth in Lending Disclosure Statement: the standard form, required by law to lay out the terms and conditions of the mortgage, including the annual percentage rate (APR) and all other charges
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Mortgage Note or Contract (or Promissory Note): the agreement between the lender and the borrower providing payment due dates, interest rates and other term information.
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Deed of Trust/Mortgage Deed/Security Instrument: evidence of the lender’s claim to a property to secure repayment of debt.
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Warranty Deed: transfers the property from the seller to the buyer
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Escrow Documentation: showing transfer for earnest money, and amounts of any taxes and insurance payments made into an escrow (or impound) account
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Local/State Tax Documentation: recording the sale and providing information on where to send tax bills (either to buyer or to lender for payment from impound account)
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Property Survey
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Title Insurance Documents
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Proof of Homeowner’s Insurance
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Acceptance of Final Walk-Through: a statement saying that you have completed the final walk-thought and accept the condition of the property
That’s a lot of paper to sign or initial. And once it’s done, you usually get your copies in a big folder to file away.
Make sure you put it somewhere safe, aside from documenting all kinds of financial information you’d rather the identity thieves don’t see, you will need this information if you ever decide to refinance your loan.