Documents to be Signed at Closing

Before closing, you can expect to receive certain Federal, State and Contractual documents. 

Federal Documents Include:

The Loan Estimate: 

This form lays out important information regarding the loan you applied for. You will receive a Loan Estimate (LE) from us within three business days after we receive your application. Prior to October 3rd, 2015, borrowers received a Good Faith Estimate (GFE) and a Truth in Lending Disclosure (TIL) instead of a Loan Estimate (LE). The Good Faith Estimate (GFE) and Truth in Lending (TIL) was replaced with a Loan Estimate (LE). However if you apply for a Reverse Mortgage, you will still receive the Good Faith Estimate (GFE) and the Truth in Lending (TIL) instead of the Loan Estimate (LE)

Related Topics:

Samples and Explanation of:    The Loan Estimate (LE)          Good Faith Estimate (GFE)          Truth in Lending (TIL)

The Closing Disclosure:

This form lists all the terms of the loan you have selected, final closing costs, and the details of who pays and who receives the money at closing. We will send you a Closing disclosure (CD) at least three business days before closing. Before October 3rd, 2015, borrowers received a HUD-1 Settlement Statement and a Truth in Lending Disclosure (TIL) instead of the Closing Disclosure (CD). However if you have applied for a Reverse Mortgage, you will still receive the HUD-1 Settlement Statement and Truth in Lending Disclosure (TIL) instead of The Closing Disclosure (CD). 

Related Topics:

Samples and Explanation of:     The Closing Disclosure (CD)          HUD-1 Settlement Statement          Truth in Lending Disclosure (TIL)

The Notice of the Right to Rescind:

This Notice is only Relevant to Refinance Transactions or Home Equity Line of Credit and not to New Home Purchases. The Notice informs you that you have three Business Days to cancel your transaction from the time of lender's fulfillment of certain conditions of the transaction and provides a form to cancel the transaction within the time frame. 

The Right to Rescind refers to the Consumer's Right to cancel certain type of loan transactions "not pertaining to a new home loan" within a certain time frame. The three day clock starts when you sign the credit contract "Promissory Note", you receive a Truth in Lending Disclosure (TIL) "most cases this would be a Closing Disclosure (CD)" and you receive two copies of a notice explaining your right to rescind. A Business Day includes a Saturday, so if you signed documents on a Friday, you have till midnight of Tuesday to Rescind unless there are no public legal holidays in between.  

The Initial Escrow Statement:

It lists the Insurance Premiums, Estimated Taxes and other charges the Lender anticipates paying from your Escrow account during the first year of your loan. 

Related Topics:     Escrow Account          Home Insurance           Taxes

Contractual Documents Include: 

A Promissory Note:

It includes the amount you owe, the interest rate of the mortgage loan, the dates when the payments are to be made, the total amount you will pay, the length of time for repayment, whether and how the payments amounts can change and the place where payment amounts are to be sent.

Related Topics:    Sample Promissory Note

A Mortgage or Security Instrument:

The Rights and Responsibilities of the Borrower are explained in this instrument. It also grants the servicer the right to foreclose on the mortgage if payments are not made or certain conditions are not met.

Related Topics:      Sample Security Instrument

State and Local Government-mandated Documents:

Certain documents that are required and mandated by the State or the local government intended to protect your interest. 

Lender Documents:

Certain documents, such as an Affidavit of occupancy is added to the documents by the lender.

 Related Topics:             Uniform Residential Loan Application               Good Faith Estimate (GFE)            Truth in Lending Disclosure (TIL)                What is a Credit Check                  What is a Credit Score             What is an Appraisal                   Documents to be signed at closing                 Uniform Residential Loan Application                 What are the Duties a loan processor may/may not perform?                What is a mortgage underwriter and its Job Description?                  What is a Mortgage Loan Originator (MLO) and its Job decsiption                  What is a mortgage lender/funder ?            The Loan Estimate (LE)                 The Closing Disclsoure (CD)               Grants & Assistance Programs                  The Loan Estimate (LE)                The Closing Disclsoure (CD)                What is “Notice of right to rescind” ?                    What is "Cash out refinance"?                 Promissory Note                    A Mortgage or Security Instrument                  What is Debt to Income Ratio and how is DTI calculated                    What are Jumbo Loans?            Conventional Loans           FHA Loans             VA Loans             USDA Loans          An Adjustable Rate Mortgage             A Fixed Rate Mortgage            Construction Loans             Graduated Payment Loans                Reverse Mortgages 


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