As you approach the culmination of the homebuying process, the mortgage closing becomes a critical stage where various documents and agreements are finalized. A well-organized mortgage closing documents checklist can be invaluable in ensuring a smooth and efficient closing process.
Here’s a comprehensive checklist outlining essential documents and steps involved in the mortgage closing:
- Loan Estimate and Closing Disclosure: Compare the Loan Estimate provided at the beginning of the loan process with the Closing Disclosure. Review these documents carefully to ensure accuracy in terms of loan terms, interest rates, closing costs, and any changes made.
- Proof of Insurance: Bring evidence of homeowner’s insurance, confirming coverage for the property. Lenders often require this documentation to protect their investment in case of damage to the property.
- Title Insurance and Title Documents: Review the title insurance policy, ensuring that there are no title issues or discrepancies. Verify the accuracy of the property description and confirm that there are no outstanding liens or claims against the property.
- Promissory Note: This document outlines the terms of the loan, including the borrowed amount, interest rate, repayment terms, and consequences for defaulting on payments. Review it thoroughly and seek clarification on any unclear points.
- Deed of Trust or Mortgage: This document serves as security for the loan, granting the lender the right to foreclose if the borrower defaults. Ensure all details are accurate and align with the agreed-upon terms.
- Closing Statement or Settlement Statement: Review this document detailing all the financial transactions involved in the closing, including the final costs, credits, and prorations for taxes and insurance.
- Proof of Identity and Funds: Bring a government-issued ID and evidence of the funds required for the down payment and closing costs, such as a cashier’s check or wire transfer receipt.
- Occupancy Affidavit: Confirm your intention to use the property as your primary residence, as stated in this document.
- Truth in Lending Act (TILA) Statement: Review this document outlining the cost of your credit over the loan term, including the Annual Percentage Rate (APR) and total loan costs.
- Closing Agent’s Contact Information: Have the contact information of the closing agent or attorney overseeing the closing readily available for any last-minute queries or clarifications.
- Additional Documents: Depending on specific circumstances, additional documents may be required, such as a Power of Attorney if someone else is representing you at the closing.
Having these documents organized and ready for review significantly streamlines the closing process. Before the closing appointment, ensure you’ve thoroughly reviewed all documents and seek clarification on any unclear points. Being prepared and well-informed can contribute to a successful and stress-free mortgage closing experience.
