Documents to be Signed at Closing

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). 

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. 

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.

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.