🐝 Informed
Walking away from closing with a stack of papers?
Here’s what each document means and why it matters so you can bee confident and organized.
🐝 Loan Estimate
Your lender must provide this three-page summary within three business days of receiving your application. It shows:
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Estimated interest rate, monthly payment, and closing costs
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Taxes and insurance projections
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Potential changes to your rate and payments
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Any penalties for early payoff (prepayment penalty) or loan increases despite on-time payments (negative amortization)
🐝 Closing Disclosure
This five-page form arrives three business days before closing. It details:
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Final loan terms
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Projected monthly payments
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Closing costs
It lets you compare the final terms to your Loan Estimate and ask questions before signing.
🐝 Mortgage & Note
These legal documents spell out your mortgage obligations and the repayment schedule you’ve agreed to.
🐝 Deed & Schedule A
The deed officially transfers ownership of the property & the schedule A describes the property.
In a cash purchase, it goes to you immediately; with a mortgage, you receive it once the loan is paid off.
🐝 Affidavits
Binding statements signed by either party. For example, sellers often sign an affidavit confirming no liens exist on the property.
🐝 Riders
Amendments to the sales contract that can affect your rights. Example: sellers may retain occupancy for a period after closing while paying rent to you.
🐝 Insurance Policies
Proof of coverage for your property:
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Homeowners insurance: your responsibility
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Title insurance: provided at closing to protect against title disputes
🐝 Pro Tip: Keep these documents organized in a folder or digital file. They’re not just paperwork—they’re your record of one of the biggest investments you’ll make!