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LESSON 24: CLOSING DAY
(continued from previous page)
The closing
agent conducts the settlement
meeting and sees to it that all documents are signed and recorded
and that closing
fees and escrow
payments are paid and properly distributed.
At this point, you will receive a number of important documents:
HUD-1 settlement statement: This is a detailed
list of all costs related to the sale of the home. Both you and
the seller (who may be paying some of the closing costs) sign it.
Borrowers should compare their HUD-1 statements against their (good
faith estimate) GFEs to see if the actual closing costs differ
significantly from the closing costs estimated by their lenders
earlier. See
Tips.
Final TILA statement: You
received the first version of this statement after applying for
your mortgage. This final version outlines the cost of your loan
and APR
and takes into account any modifications made to your rate,
points,
etc., between application and closing. Make sure that everything
looks in order!
Mortgage note: This is a
legal document stating your promise to repay the mortgage. It indicates
the amount and terms of the loan, and what the lender can do if
you fail to make payments.
Mortgage or Deed of Trust:
This document secures the note and gives your lender a claim against
the home if you fail to live up to the terms of the mortgage note.
Certificate of Occupancy:
If you are buying a newly constructed house, you need this legal
document to be allowed to move in.
Oh, yes. There's jst one more thing: You get the house
keys. Congratulations on now owning your new home!
By law, borrowers
can review the HUD-1 document 24 hours before closing. You
may want to do this so you have some additional time to
clear up any mistakes and resolve any problems.
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