At a mortgage closing, both the buyer and the seller sign papers to officially complete the deal and transfer property ownership to you. After you review and sign all closing documents, you will own your new home.
The day before closing, be sure to gather all the paperwork you have received throughout the home-buying process. You may refer to these documents at closing:
- Good-faith estimate
- Proof of title search
- Proof of insurance, and, if necessary, flood certification
- Proof of homeowner's insurance and mortgage insurance
- Home appraisal
- Home inspection reports
You can expect the following people to attend the closing:
- Closing Agent. The closing agent, who might work for the lender or the title company, conducts the settlement meeting and makes sure that all documents are signed and recorded and that closing fees and escrow payments are paid and properly distributed
- Attorney. The closing agent might be an attorney representing you or the lender. Both sides may have attorneys. It's a good idea to have an attorney present who represents you and only you
- Title company representative. Provides written evidence of the ownership of the property
- Home seller
- The seller's real estate agent
- You. Also known as the mortgagor
- The lender. Also known as the mortgagee
At closing, you will sign legal documents and pay closing costs and escrow items. Be sure to read all documents carefully before signing, and do not sign forms with blank lines or spaces. You will receive the following important documents:
HUD-1 settlement statement
- A detailed list of all costs related to the sale of the home. Take time to compare this to the good-faith estimate to see if actual closing costs differ significantly, and clear up any problems if necessary.
Final TILA statement
- Review this outline of the cost of your loan and APR, and make sure everything is in order.
- This document states your promise to repay the mortgage. It indicates the amount and terms of the loan, and what the lender can do if you fail to make payments.
Mortgage or deed of trust
- This document secures the note and gives your lender a claim against the home if you fail to live up to the terms of the mortgage note.
Certificate of occupancy
- If you are buying a newly constructed house, you need this legal document to move in.
Contact a Bank of Tennessee Mortgage Banker at (866) 378.9500 for more information.
Loans subject to credit approval. Bank of Tennessee is an Equal Housing Lender