The Closing (step 5)
The closing is the term used for going to the title company and signing all the documents in conjunction with finalizing the loan with the lender or Mortgage Company and finalizing the purchase of your home. Parties that have a personal attorney may want to have the documents reviewed by that attorney prior to signing, but many people rely on common sense, the realtor, the lender and the closer at the title company to make sure that everything is handled correctly. You can expect to sign many documents at closing including the HUD-1 settlement statement, note, deed of trust, and deed which are the most important.
HUD-1 Settlement statement is an itemized list of the buyers and sellers closing costs.
The Note is the legal document saying you are borrowing the money from the lender and promise to repay the money in the agreed upon terms.
Deed of Trust is the document that you sign giving the lender the permission to take back the property you are buying if you do not make the mortgage payments that you agreed to pay.
The Deed is the document that transfers ownership of the property from the seller to you.
You will receive copies of all the documents you sign at the closing and any documents that need to be recorded at the courthouse to make the transaction official. They will be mailed to you after they are recorded. Congratulations, you are now a HOME OWNER!