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Understanding the documents involved

Closing on your new loan is a significant event and it’s critical you understand the all the paperwork you’ll be signing.


Understanding the purpose of the primary documents you’ll see at closing will help you move forward with more confidence. Once everything signed, you’ll walk away with a better understanding of how your new loan aligns with your personal and financial goals.

Make sure to read each document thoroughly and ask your lender if you have any questions or concerns.

The Most Important Forms You'll Sign at Closing

A

Closing Disclosure: This provides the actual fees, costs and credits associated with closing your loan. Your lender is required to provide you with the Closing Disclosure three business days before your scheduled closing to review and ensure that the loan terms and costs align with those provided in your Loan Estimate.

B

The Promissory Note: This is the legal document you sign agreeing to repay the loan according to the terms to which you agreed. It outlines the details of the loan, the dates when payments are to be made and where payments are to be sent. It also explains what can happen if you fail to make a payment on time.

C

Deed of Trust: This document explains your rights and responsibilities as a borrower. It also gives the lender the right to take back the property by foreclosure should you fail to repay your loan as agreed.

D

Deed: The seller will sign the deed to transfer ownership over to you, and it will have the names of all the buyers on it. Your title will be held with a third-party trustee until you have paid for the house in full. You will receive a copy of the deed at closing.

E

Affidavits and Declarations: These are statements declaring all the information you provide is true.

Because these documents are legally-binding and will affect your finances going forward, be sure to ask for clarification if something doesn’t make sense.

Tools and Resources

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Brochure: Understanding the Mortgage Documents

Learn more about completing the mortgage documents required for home purchase.

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Calculator: Closing Costs

Estimate what your closing costs might be.

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Video: Closing Process

Learn more about the final stage of refinancing—closing your loan.