What to Expect on Closing Day – Finances
On Closing Day, you will have a meeting with the other parties in which you will sign all of the legal documents, including the agreement between yourself and your lender, and the agreement between yourself and the seller. Before you sign either, carefully review the documents or have your attorney review them. If any documents are incomplete or have blank lines, do not sign them. The documents you will receive at closing include:
- The Final Closing Disclosure – This multi-page document provides you with the details of your mortgage loan, the loan terms, the estimated monthly payment, and a breakdown of the closing costs. Although you are presented with this document at closing, you should already have one. The lender is required to provide you with a copy of the disclosure at least three days prior to closing.
- The Mortgage Note – The mortgage note details the amount and terms of the loan as well as what the lender can legally do in the event you don’t make your payments.
- Deed of Trust – The Deed of Trust secures the Mortgage Note and gives your lender the right to make a claim against the home if you fail to make your payments as agreed.
- Certificate of Occupancy – The home you purchase needs to be habitable before you can move in. A Certificate of Occupancy is needed before you can legally move in.
Once the documents are signed, you will now pay the closing costs and escrow. Depending on your agreement, some of the fees may be able to be included in the loan amount. You can also agree to pay a higher interest rate and have your lender pay the fees. In either case, the lender will need to know how you intend to pay your closing costs before closing day.
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