Housing Closing Documents

One of the most notable documents is the closing disclosure Loan Estimate, this document confirms the costs that are found in the loan estimate. Buyers have the option to review the closing disclosure three-days prior to the closing meeting, it is wise to review this document and confirm the costs before signing.

Some important closing documents include:

  • Closing Disclosure (or HUD-1 and TIL in some cases) – this is a summary the loan terms, monthly payments and closing costs.
  • Promissory Note – This is an agreement that you will repay the loan. It includes the loan amount, the loan’s terms, and the lender’s rights if you fail to make the payments.
  • Deed of Trust – this document secures the promissory note and gives the lender a claim against the property if you fail to follow the terms.
  • Certificate of Occupancy – if the house you are purchasing brand new, this is the legal document you’ll need to move in.

Every homebuyer should review these documents before signing and address any issues before closing.