Once your loan has been approved and your loan closing date has been set, this section will give you some idea of what to expect at closing and what happens after closing.
What happens at the loan closing?
The closing will take place at the office of a title company or attorney in your area who will act as our agent. If you’re purchasing a new home, the seller may also be at the closing to transfer ownership to you, but in some states, these two events actually happen separately.
During the closing you’ll be reviewing and signing several loan papers. The closing agent or attorney conducting the closing should be able to answer any questions you have or you can feel free to contact your loan advisor if you prefer.
Just to make sure there are no surprises at closing, your loan advisor will contact you a few days before closing to review your final fees, loan amount, first payment date, etc.
The most important documents you’ll be signing at the closing include:
HUD-1 Settlement Statement
This document provides an itemized listing of the final fees charged in connection with your loan. If your loan is a purchase, the settlement statement will also include a listing of any fees related to the transaction between you and the seller. If this loan will be a refinance, the settlement statement will show the pay off amounts of any mortgages that’ll be paid in full with your new loan. Most items on the statement are numbered according to a standardized system used by all lenders. These numbers will correspond to the numbers listed on the Good Faith Estimate that will be provided in your application kit. This document is also commonly known as the closing statement and both the buyer and seller must sign this document.
Truth-in-Lending Statement (TIL)
This document provides full written disclosure of the terms and conditions of a mortgage, including the annual percentage rate (APR) and other fees. It’s exactly the same as the TIL you received immediately after your initial application, except it’s been updated to reflect the final rate and fee information. Federal law requires that all lenders provide you with this document at closing.
This is the document you sign to agree to repay your mortgage. The note will provide you with all of the details of your loan including the interest rate and length of time to repay the loan. It also explains the penalties you may incur if you fall behind in making your payments.
Mortgage/Deed of Trust
This document pledges a property to the lender as security for repayment of a debt. Essentially this means you’ll give your property up to the lender in the event you can’t make the mortgage payments. The Mortgage restates the basic information contained in the note, as well as details the responsibilities of the borrower. In some states, the document is called a Deed of Trust instead of a Mortgage.
If your loan is a refinance, Federal Law requires that you have three days to decide positively that you want a new mortgage after you sign the documents. This means the loan funds won’t be disbursed until three business days have passed. The closing agent will provide more details at the closing.
Will I need to have an attorney represent me at closing?
In some areas of the country it’s very customary, and sometimes required by law, to have an attorney represent you at the closing. In other areas, attorneys aren’t as common at a real estate closing. Please contact the closing agent if you have questions about attorney representation. By all means, we recommend that you have an attorney at the closing if it would make you more comfortable. If your attorney has any questions about your new mortgage, please refer them to your loan advisor. We’d be happy to provide any information necessary.
Can I get advanced copies of the documents I’ll be signing at closing?
The most important documents you’ll sign at closing are the note and mortgage, sometimes called the Deed of Trust. Unless there are special circumstances, these documents are usually prepared one to two days before your closing. Other documents are prepared by the closing agent the day before or the day of your closing. If you’d like copies of the completed documents to be sent to you after they’re prepared, please contact your loan advisor.
Who will be at the closing?
The closing agent acts as our agent and will represent us at the closing. However, your personal loan advisor will contact you prior to closing to talk about your final documents and to provide a final breakdown of your closing fees. If you have any questions that the closing agent can’t answer during the closing, ask him/her to contact your loan advisor by phone and we’ll get you the answers you need—before the closing is over!
I won’t be able to attend the closing. What other options are there?
If you won’t be able to attend the loan closing, contact your loan advisor to discuss other options. If someone you trust is able to attend on your behalf, you can execute a Power of Attorney so that this person can sign documents on your behalf. In other cases, we’re able to mail you the documents in advance so you can sign them and forward them to the closing agent. We’re sure to have a solution that’ll work in your circumstances.
Can I make my monthly payments with an automated debit from my checking account?
Automated monthly payments are available. At the loan closing an automated payment application will be provided. Simply return it at your earliest convenience to enroll in the automated payment program.
If I apply, where will the closing take place?
We use a nationwide network of closing agents and attorneys to conduct our loan closings. We’ll schedule your closing to take place in a location that is near your home for your convenience.
We’ll deliver our loan documents and wire transfer your loan funds to the closing agent or attorney prior to closing so that they’ll have plenty of time to prepare for your closing.
4020 Fee Fee Road
Bridegton, MO 63044
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Mortgage Solutions, LLC (NMLS #277481). Missouri Residential Mortgage Licensee #17-1908; Illinois Residential Mortgage License #MB.6760773; Kansas Licensed Mortgage Company #MC.0025070.
Equal Housing Lender.