At closing, you will sign legal documents, pay closing costs, and most likely establish escrow accounts for taxes and insurance. Be sure to read all documents carefully before signing, and do not sign forms with blank lines or spaces. The attorney will go through the paperwork with you explaining the line items. Hopefully you will have been provided copies of all of the documents at least by the day prior to closing for your review. You will receive the following important documents:
HUD-1 settlement statement
- A detailed list of all costs related to the sale of the home. Take time to compare this to the good-faith estimate to see if actual closing costs differ significantly, and clear up any problems if necessary.
Final TILA statement(Truth in Lending)
- Review this outline of the cost of your loan and APR, and make sure everything is in order.
Mortgage note
- This document states your promise to repay the mortgage. It indicates the amount and terms of the loan, and what the lender can do if you fail to make payments.
Security Deed
- This document secures the note and gives your lender a claim against the home if you fail to live up to the terms of the mortgage note.
Certificate of Occupancy
- If you are buying a newly constructed house, you need this legal document to move in.
