Loan-Closing Paperwork, Up Close

“Closing” sounds kind of mysterious – as if big complicated secret events are going to take place. Formally speaking, closing is the final steps of becoming the owner of a property.  Those steps frequently overlap with “consummation”, which is the process of committing to the financial obligations of buying with a mortgage loan.

No mystery or secret, really. Here’s the main things that will happen:

  • For most types of home purchases, you will get a Closing Disclosure detailing the loan terms, at least 3 business days prior to consummation (which is frequently the same date as closing.)
  • At the live closing meeting, you should end up with:
    • A copy of your Mortgage Note — the formal document where you commit to pay the loan
    • Your Deed of Trust or Mortgage documents
    • The binding Sales Contract

In some states, you might also get the keys to the house; in other states, that physical handover might happen separately.

By this time, your real estate and finance professionals should be well acquainted with you and the transaction. They’ve been through this before. Relax, ask questions as you go, and be prepared to sign a few papers!  Take the time to read them thoroughly before committing.

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