Getting Started 1. Managing Your Money 2. The Home Buying Process 3. Keeping Your Home
How the Process Works
Meet the Professionals
Pre-Qualifying for a Loan
Knowing Your Rights
Mortgage Products and Financing
Preparing for Loan Processing
Loan Closing


Closing is an exciting part of the process. Ownership of the home transfers from the seller to you the buyer. Before this last stage, you would make a final home inspection to verify that any repairs or changes have been made.

Click the tab below to view the roles and steps in the closing process.

Review Your Closing Documents

Like the processing stage, closing requires careful attention to details in documents. If errors appear, such as misspelled names, title to the home may be recorded incorrectly. These documents not only transfer the title to the home, but also inform you about the details of the transaction.

The list below includes various documents you will review and sign at the closing. Ask to review the settlement statement document before the closing meeting. There usually is not time at the closing meeting to read each document. You and your attorney will examine them for important language and accuracy.

Click the links to see examples of some of these.

List of Documents

  • Promissory Note — A written promise to pay a specific amount at a specific time. You are agreeing to repay your loan.

  • Deed of Trust — A security instrument in which the borrower conveys title to the property to a third party who holds it in trust as security for the lender. This is similar to a mortgage, but uses a third party to hold the deed.


    Mortgage — A pledge of property as security for a debt. If you fail to pay the loan, you are agreeing that your lender can take the property.
  • Uniform settlement statement (HUD-1) — A settlement summary form required by RESPA to be used by closing agents. This form shows all your closing costs.

  • Truth-in-lending disclosure — A statement required by the TILA Act to include the annual percentage rate (APR) as well as other facets of the mortgage. This tells you how much you will pay for your loan over the period of your mortgage, usually 30 years.

  • Title insurance policy — Insurance that protects the buyer, lender or others against any loss caused by a defect of title to the real estate. This protects you and your lender's investment in case someone else claims prior ownership of your home.
  • Hazard insurance policy Insurance coverage that pays the insured in case of property loss or damage. This policy protects you and your lender's investment in case of weather related damage or other covered losses.
  • Right of Rescission Disclosure— A statement of the buyer's right to nullify the transaction within 3 days after closing. This right applies to refinances only not first purchase of a home.

Depending on the loan type and program, there might be additional documents required in the closing package such as those listed below:

  • Homeowners association agreement for condominiums
  • Riders for adjustable-rate mortgage loans
  • Real estate sales contracts

In the next section, you will review what you learned about closing costs and learn more about each person's responsibilities at the closing meeting.



MainGetting Started • 1. Managing Your Money 2. The Home Buying Process3. Keeping Your Home


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