N.E.O. Home Loans - Closing The Loan On Your First Home

Closing The Loan On Your First Home

So, you've found your first home and you have applied for your mortgage; now it's closing time. Closing is the completion of the real estate sale and your mortgage loan.

Your Closing Documents

You will have to review and sign several documents at closing in order to complete the whole process. Following are some of the important documents you will see at the closing. The HUD-1 statement will list all the closing costs and fees that you are paying in connection with your loan. You will also sign the mortgage note which states that you promise to repay the loan. You will also sign the mortgage or deed of trust which provides a detailed legal description of the property you are buying and confirms that you are pledging the property as collateral for repaying the loan. You will also see the Truth in Lending statement which states your annual percentage rate. You will also see your monthly payment letter which shows a breakdown of your monthly mortgage payment.

Your Closing Costs and Fees

This is where you will pay any closing costs and fees that are still unpaid like processing fees, underwriting fees, attorney fees, title fees, and points. You will always be told ahead of time how much money you will need to bring to closing so you don't show up with insufficient funds. If you are buying a home then it is very possible the seller can be covering all your closing costs and the only thing you need to bring is your down payment money. If you are refinancing and opted to have your closing costs rolled into your new loan it is very likely that you will come to closing with no money.

Conclusion

You may still have questions about the mortgage process. You can contact me and I will answer any questions you have and are more than happy to walk you through the entire mortgage process.