Closing

The closing is the time at which the property is formally sold and transferred from the seller to the buyer. It is at this time that the borrower takes on the loan obligations, pays all closing costs, and receives title from the seller. One of our most important roles is to attend the closing with you to be sure all the documents are prepared and executed correctly and to explain the meaning of each document before you sign it.

We will attend to virtually all of the details surrounding this aspect of the transaction, including alerting you in advance of the items you will need to provide when you arrive.

The following are only some of the documents you are likely to see at your closing:

Promissory note:
The promissory note is the document that establishes your obligation to repay the money that you borrow to buy the property. It sets forth the interest, term of loan and amount of monthly payment.

Mortgage:
The mortgage establishes the lien against the property and has the effect of securing the promissory note. It will be recorded in the land records with your deed and allows the lender to foreclose if you are in default with the promissory note.

Loan Application:
You will be asked to sign the final typed version of your loan application (you may have already prepared a handwritten form earlier).

Payment Letter:
Tells the buyer the breakdown and amount of the first payment and when it is due and where it is to be sent (This sets forth the actual amount of the principal and interest plus escrow for PMI, insurance and taxes).

Name Affidavit:
To the effect that various variables of one’s name are nonetheless one and the same person.

Warranty Deed:
A written instrument duly executed and delivered by the seller for the purpose of conveying title to real estate. The Warranty Deed contains a covenant whereby the seller agrees to protect the buyer against any claim to the property not recited in the deed. The original will be recorded in the town or city land records.

Closing Disclosure

The Closing Disclosure is a form required by the federal government which describes the loan terms and itemizes all the costs and expenses of the transaction. It discloses the purchase price, loan amount and various closing costs and adjustments. It shows the net amount the buyer needs to bring to closing and the net amount seller will be receiving at closing.