Closing & Settlement Services

What you can expect to sign at the closing table…

During the Real Estate closing, both buyer and seller are required to sign important documents. The following list contains brief explanations of most of the documents:

r       HUD Statement: This is the detailed financial itemization of the real estate transaction. It contains real estate and loan closing costs as well as tax pro-rations, homeowner dues, insurance, and title related charges.

r       Warranty Deed: Transfers title of the real property from the seller to the buyer.

r       Note: This document outlines the borrowing terms and is the agreement between the borrower and the lender. In effect it is an I.O.U.

r       Mortgage: This is the document filed with the County Recorder placing a lien on the property in the amount of the note.

r       Truth in Lending Statement (Regulation Z): Discloses the amount financed, interest rate, the annual interest rate and the total cost of the loan over its life.

r       Itemization of Amount Financed:  Explains the prepaid financed costs that are subtracted from the total loan amount which are on the Truth in Lending Statement.

r       Payment Letter: Details the monthly payment.

r       Location Survey: Assures the Lender and Buyers that the buildings are located within the building setback lines and the buildings do not encroach into easements.

r       Anti-coercion Form: Buyers acknowledge that they have not been pressured to buy hazard insurance from a particular company. 

r       Tax Pro-ration Agreements: Buyer and Seller may choose to re-prorate the taxes and any homeowner association dues if there is a future adjustment in those amounts.

r       Buyer’s Affidavit: Information on the loan application is still true and correct.

r       Seller’s Affidavit: Sellers state that they have not altered the property in any way that might cloud the title and affirm that all liens have been addressed.

r       Payoff Confirmation: An accounting of disbursements made to payoff lenders for all liens against the real property.

r       Errors and Omissions/ Compliance Agreement: This mutual agreement requires Buyers and Sellers to cooperate, sign, and correct any unintentional typographical errors or mistakes on the closing documents.