Below are listed the main documents
you will be asked to sign at your closing. Many loans are sold in the
secondary market and therefore, they will all contain the same
documentation. At Knox Title Insurance, Inc. we want you to have an
opportunity to view your documents in advance of closing. However, many
lenders will overnight or email their documents at the last minute and so you
may not be afforded that opportunity.
Take a few minutes to review these documents that are common to all settlements
involving lenders. (Of course cash closings do not use lender
documents). If you have questions, don’t hesitate to call your closer at
Knox Title Insurance, Inc. or your loan officer for clarification. We
believe that the more knowledge you have regarding your closing the more
comfortable you will be with the whole process.
This form has become standard for all closings, including cash closings. It
should be reviewed carefully starting with the second page. A list of
charges to each party is shown with a total at the bottom. The front page
is a summary of the transaction for each party. For the buyer it will be
Sales price plus any prorated charges in the top section, and the lower section
lists credits such as loan amount(s), earnest money paid, and other
credits. The sellers column will show sales price plus any prorated
credits to the seller in the top section and in the second section, will be
listed any reductions the amount of the seller’s proceeds such as payoffs of
mortgages, taxes due, etc. Click
here for a brief explanation of each section on the HUD-1
Settlement Statement.
This important document represents the borrower(s) promise to repay the debt
created by the loan. Review this carefully at closing. It will
contain the amount of money being borrowed, the interest rate, the loan term,
payment due dates, late penalties and default language.
A conventional deed of trust is referred to as a Fannie Mae/Freddie Mac
UNIFORM INSTRUMENT. It differs slightly from VA or FHA deeds of
trust. Local banks and credit unions may use other forms but this is by
far the most commonly used. The deed of trust is recorded along with a
legal description of the property. It becomes a “lien” against the
property, and secures the borrower’s promise to repay the debt shown on the
Note. In addition to identifying the property owners (all must sign), the
terms of the loan, the DOT describes matters that would constitute a default on
the loan thereby giving the lender cause to commence a foreclosure proceeding
against the property.
The following Lender documents explain details about your loan, your lender and your
agreement to lenders requirements for the loan.
Our goal is for you to have as complete disclosure of the closing process as
possible. If you have any questions regarding these or any other
documents, please contact your closer.
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