- What happens at the loan closing?
- Will I need to have an attorney represent me at closing?
- Can I get advanced copies of the documents I will be signing at closing?
- Who will be at the closing?
- I won't be able to attend the closing. What other options are there?
- If I apply, where will the closing take place?
- Can I make my monthly payments with an automated debit from my checking account?
- If I apply for a home equity loan where will the closing take place?
What happens at the loan closing?
The closing will take place at the office of a title company in your area who will act as our agent.
During the closing you will be reviewing and signing several loan papers. The closing agent conducting the closing should be able to answer any questions you have or you can feel free to contact your Mortgage Consultant if you prefer.
Just to make sure there are no surprises at closing, your Mortgage Consultant will contact you a few days before closing to review your final fees, loan amount, first payment date, etc.
The most important documents you will be signing at the closing include:
HUD-1 Settlement Statement
This document provides an itemized listing of the final fees charged in connection with your loan. If your loan is a purchase, the settlement statement will also include a listing of any fees related to the transaction between you and the seller. If this loan will be a refinance, the settlement statement will show the pay off amounts of any mortgages that will be paid in full with your new loan. Most items on the statement are numbered according to a standardized system used by all lenders. These numbers will correspond to the numbers listed on the Good Faith Estimate that will be provided after you apply. This document is also commonly known as the closing statement and both the buyer and seller must sign this document.
Truth-in-Lending Statement (TIL)
This document provides full written disclosure of the terms and conditions of a mortgage, including the annual percentage rate (APR) and other fees. It is exactly the same as the TIL that you received immediately after your initial application, except it has been updated to reflect the final rate and fee information. Federal law requires that all lenders provide you with this document at closing.
This is the document you sign to agree to repay your mortgage. The note will provide you with all of the details of your loan including the interest rate and length of time to repay the loan. It also explains the penalties that you may incur if you fall behind in making your payments.
Deed of Trust
This document pledges a property to the lender as security for repayment of a debt. Essentially this means that you will give your property up to the lender in the event that you cannot make the mortgage payments. The Deed of Trust restates the basic information contained in the note, as well as details the responsibilities of the borrower.
If your loan is a refinance, Federal Law requires that you have three days to decide positively that you want a new mortgage after you sign the documents. This means that the loan funds won't be disbursed until three business days have passed. The closing agent will provide more details at the closing.
Will I need to have an attorney represent me at closing?
In some areas of the country it is very customary, and sometimes required by law, to have an attorney represent you at the closing. In other areas, attorneys are not as common at a real estate closing. Please contact the closing agent if you have questions about attorney representation. By all means, we recommend that you have an attorney at the closing if it would make you more comfortable. If your attorney has any questions about your new mortgage, please refer them to your Mortgage Consultant. We'd be happy to provide any information necessary.
Can I get advanced copies of the documents I will be signing at closing?
The most important documents you will sign at closing are the note and mortgage. Unless there are special circumstances, these documents are usually prepared one to two days before your closing. Other documents are prepared by the closing agent the day before or the day of your closing. If you would like copies of the completed documents to be sent to you after they are prepared, please contact your Mortgage Consultant.
Who will be at the closing?
The closing agent acts as our agent and will represent us at the closing. However, your personal Mortgage Consultant will contact you prior to closing to talk about your final documents and to provide a final breakdown of your closing fees. If you have any questions that the closing agent can't answer during the closing, ask them to contact your Mortgage Consultant by phone and we'll get you the answers you need - before the closing is over!
I won't be able to attend the closing. What other options are there?
If you won't be able to attend the loan closing, contact your Mortgage Consultant to discuss other options. If someone you trust is able to attend on your behalf, you can execute a Power of Attorney so that this person can sign documents on your behalf. In other cases, we're able to mail you the documents in advance so that you can sign them and forward them to the closing agent. We're sure to have a solution that will work in your circumstances.
If I apply, where will the closing take place?
We'll schedule your closing to take place in a location that is located near your home for your convenience.
We'll deliver our loan documents and wire transfer your loan funds to the closing agent prior to closing so that they'll have plenty of time to prepare for your closing.
Can I make my monthly payments with an automated debit from my checking account?
Automated monthly payments are available. At the loan closing an automated payment application will be provided. Simply return it at your earliest convenience to enroll in the automated payment program.
If I apply for a home equity loan where will the closing take place?
It couldn’t be easier! We will send the closing documents to a branch closest to you and we’ll schedule an appointment with you to review them. One of the documents will need to be signed in the presence of a notary public.
After you sign the documents, we’ll send you a check for any funds that you are to receive and we’ll pay off any other debts that you intend to satisfy with your new loan.