Mortgage Info > New Life Mortgage > Closing/Settlement

The Closing/Settlement

You've completed your loan application, you've submitted an offer for your dream home and the offer has been accepted - now what?

The Wait

Processing a loan normally takes several days.

During this period, you, the seller, and the lender should be making sure that all obligations related to the purchase and the home loan is complete prior to the signing of the final documents. Some examples of these obligations include: a final and satisfactory home inspection, confirmation of the purchase of homeowners insurance, and a satisfactory title investigation to verify that there are no liens on the property.



The closing (or settlement) is the meeting at which you sign all the paperwork and make the payments needed to become the official homeowner. The title company, which issues the title insurance, usually provides a forum for the exchange of documents and the releasing of funds during the closing.

Prior to the closing meeting, your title company and lender coordinate on complete of the HUD-1 Settlement Statement. This document will provide the final total for your closing costs. It establishes the total funds you must bring to closing. Your lender and/or your real estate agent will get with you to review the HUD-1 Settlement Statement. You will need to obtain a cashiers check or arrange to wire money to closing to pay any closing costs due. Also, all buyers and sellers will need to bring a picture ID to the closing.

There are many documents that need to be signed prior to receiving the keys to your home. For this reason, a closing typically takes one or two hours. The three most important documents you will sign are the note, the mortgage (deed of trust), and the deed. The mortgage (promissory) note represents your promise to pay the lender according to the agreed terms, including the dates on which your home loan payments must be made and the location to which payment must be sent.

The mortgage also known as a deed or trust or a security instrument, is a contract that makes your home the security on the loan or guarantees its repayment. And the deed is the document that transfers the ownership of the property from the seller to the buyer.

Once these documents are signed and the closing costs are paid, you are a homeowner!

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