Terms of Use:   

The day that you close, you will meet with your lender, review and sign several documents.  Be sure and read the documents and ask any questions that you may have.  Remember that the only dumb question is one that is not asked.  You are making a very significant decision and need to be totally comfortable with every aspect of the closing process.

When you meet with the lender, you will present your paid homeowner's insurance policy or a binder and receipt showing that the premium has been paid. The closing agent will then list the money you owe the seller (remainder of down payment, prepaid taxes, etc.) and then the money the seller owes you (unpaid taxes and prepaid rent, if applicable). The seller will provide proofs of any inspection, warranties, etc. Once you're sure you understand all the documentation, you'll sign the mortgage, agreeing that if you don't make payments the lender is entitled to sell your property and apply the sale price against the amount you owe plus expenses. You'll also sign a mortgage note, promising to repay the loan. The seller will give you the title to the house in the form of a signed deed. You'll pay the lender's agent all closing costs and, in turn, he or she will provide you with a settlement statement of all the items for which you have paid. The deed and mortgage will then be recorded in the state Registry of Deeds, and you will be a homeowner.

Things you will get at closing include:

  • Settlement Statement, HUD-1 Form (itemizes services provided and the fees charged; it is filled out by the closing agent and must be given to you at or before closing)

  • Truth-in-Lending Statement

  • Mortgage Note

  • Mortgage or Deed of Trust

  • Binding Sales Contract (prepared by the seller; your lawyer should review it)

  • Keys to your new home