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What documents will you sign during a real estate closing?

On Behalf of | Aug 31, 2020 | Real Estate Closings |

The purchase of a home may be one of the biggest and most important investments you make in your life, especially as more of us work, educate our children and enjoy our leisure time at home.

Because of the impact that this purchase can have on your life, you will need to carefully review and sign a wide variety of documents before you take ownership of your house. What documents will you sign during the closing process?

Closing disclosure

Before you close on a home, federal law requires the mortgage company to offer you final details about the loan you chose, the repayment period, projected monthly payments and other costs associated with the loan. Because the lender must provide you with this closing disclosure at least three days before your closing date, you can review the document, ask questions and fix any errors you find.

Loan application

Things may have changed since you first applied for the loan for this home, so it is important to review the loan application to ensure that it is correct and still reflects your situation.

Master promissory note

After reviewing the closing disclosure, you will need to sign the master promissory note. Your signature of this document, sometimes also called the “mortgage note,” commits you to repaying the loan according to the terms listed in the note. The master promissory note will also detail necessary information about your loan like the interest rate.

Initial escrow disclosure

While the closing disclosure will have covered many of the details in the initial escrow disclosure, this document will go into more detail on the details of your escrow account

Deed of trust and property deed

The property deed transfers ownership of the property to your name and creates a record that you own the property. The deed of trust, on the other hand, formalizes your responsibility to your mortgage lender.

With the wide variety of legal and financial documents to review and sign during the closing process, speaking to an attorney can help you enter home ownership with greater confidence. They can assist you in navigating this paperwork and moving forward toward life as a homeowner.


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