Closing takes place at the Title
Company's office. We send all your paperwork there so
it's ready when you arrive. If you'll need to bring money
to the closing, the closing company will call you a couple
days in advance to let you know. Remember to bring a certified
check for that amount. The title company can't accept
personal checks.
At the closing you'll sign various documents, including:
- HUD-1 Settlement Statement
- Note
- Mortgage
The HUD-1 shows all
the financial details of the transaction, including
the loan amount, the closing
costs, and the total amount to be paid in, if any.
The closing costs are itemized and the title company's
closer will go through each of the costs. Check them
against your closing costs estimate sheet to see our
Closing
Costs Calculator make sure they are accurate.
The Note is the legal
document that creates the obligation to the buyer to
repay the loan to the lender. It will show the loan
amount, the interest rate and the amount of the monthly
payments.
The Mortgage is the
document that gives the lender an interest in the house
as security, or collateral, for the loan.
Right of Rescission
After all the documents are signed the right of rescission
period starts. By Federal law you are given three business
days to void the transaction. This is important to remember
if you need proceeds of the refinance to be available
on a certain date, as the right of rescission period
typically can not be waived or shortened. The rescission
period is three full business days between the day you
close and the day the loan disburses. For example, if
you close on Monday your disbursement day is Friday.
On the disbursement day, your old loan will be paid
off and you'll receive a check for any proceeds of the
loan due you. Voilà!
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