Palm State Mortgage reminds you that 2015 brought us the Know Before You Owe mortgage rule. So, even if you have bought a home previously, you might see some unfamiliar new forms at closing.
Just to prove that the new rule has simplified the mountain of paperwork often associated with a loan, we want you to know that the new law actually replaced four old disclosure forms with two new ones that reveal more transparency concerning the process.
Previously we have created a blog that began the discussion about that mythological mountain of paperwork, involved in buying a home. We focused on the forms you would see at the opening of the mortgage process.
Now we shift our focus to the closing forms. These are the documents you will legally sign at Closing and do not worry. There is not quite a mountain of them. Our blog title says you will love these papers and on second thought that might be overstatement; you will respect them and you will love the opportunity they symbolize. Now, let’s look at your closing forms, one at a time.
The Closing Forms: Documents You’ll Sign at Closing
1. Closing Disclosure:
This form lists all of the actual fees, costs and credits associated with completing your loan. The transparency of this document is evident in the rule that your lender must provide you with it at least three business days before your scheduled closing.
Everyone concerned wants you to have time to look over the deal. With this paper in hand, you can ensure that the loan terms and costs line up significantly with those provided in your Loan Estimate.
2. The Promissory Note:
Here’s where you see the details of the loan. You will be informed on the due dates for payments and where to send them. There is also an explanation of what happens if you fail to make your payments on time.
When you sign this paper, you are agreeing to repay the loan by the terms specified.
3. Deed of Trust:
This form explains your rights and responsibilities as a borrower. As you sign, you are giving the lender the right to take back the property through foreclosure if you can not pay as agreed.
With this paper, the seller signs the deed to transfer ownership over to you. It contains all the names of all the buyers on it.
You should understand that your title will be held by a third-party trustee. It is not really yours, until you have completely paid for the house. You will, however, be given a copy of the deed at closing.
5. Affidavits and Declarations:
These papers declare that the information you provide is true. For example, you will sign one that states the property will be your primary residence and you verify that proper repairs to the property were made prior to closing.
Closing Forms: Our Grateful Closing Thoughts On Closing Documents
As we review it, this week’s blog is basically a checklist of legal forms. But, taken together, your closing forms represent the most expensive purchase of your life. That is why we want you to feel comfortable signing every page. At Palm State Mortgage, we want our clients to recognize and understand all their paper work.
Do not hesitate to ask questions concerning any forms, as Palm State Mortgage guide you through the home mortgage process, step by step.
Closing forms also mark a milestone of independence for you and your family as you take ownership of a long-held American dream. There is a special look on the faces of new homeowners, a look of pride. The team at Palm State Mortgage Company believes that a buyer’s triumphant expression at closing, is full of hope and heart and core values that make this a great country.
That look is part of the reason Palm State Mortgage is in the mortgage broker business.
Every home buyer has a story and we are proud and grateful to be a part of that story as we shake your hand at closing.
It seems appropriate that we end with a Thanksgiving wish for you and your family for a Happy Thanksgiving Holiday. It’s the perfect time of year for us to give our thanks to clients, friends and colleagues for their support, and confidence in us throughout the year.