Preparing for the Closing Appointment

• Allow adequate time for your closing. A normal real estate closing when a loan is involved will take about an hour.
• Bring two forms of I.D preferably a driver’s license and your social security card.
• Bring Certified Funds. Certified funds can only be obtained from a bank or credit union. You may wire funds into our account if you prefer. Please ask your representative for more information.
• 24 Hours Prior to Closing - Settlement Statement We will have your Settlement Statement at least 24 hours before the closing so that all parties have a chance to review their changes.

At the Closing

The following is a list of the most common documents that the Seller will be required to sign at closing:

1. The Settlement Statement (also called "HUD - 1"): Itemizes the fees paid by both the Buyer and the Seller and gives the bottom line figure due to/from each party.
    
2. Tax Proration Agreement: An acknowledgment by both the Buyer and the Seller that taxes have been prorated between them using the best available information, and contains an agreement to recalculate the tax proration when the actual tax bill is available.
    
3. Seller's Affidavit: A statement certifying that the Seller is the true and lawful owner of the property, that there are no liens against the property other than those disclosed, and that there are no other matters which would adversely affect title to the property.
    
4. Payoff Statement: Issued by the lender being paid off, this shows the principal balance, accrued interest due, and any fees required in order to satisfy the loan.
    
5. Notice to Seller: General information for the Seller regarding insurance, the payoff, the survey and termite inspections, and typographical errors.
    
6. Warranty Deed: The document which is recorded in the Public Records and transfers legal ownership of the property.
    
7. 1099-S Exemption Form: States that the criteria exempting the requirement for reporting to the IRS have been met; if this is not the case, a 1099-S form will be issued. 
    

The following is a list of the most common documents that the Buyer will be required to sign at closing:

1. The Settlement Statement (also called, "HUD - 1"): Itemizes the fees paid by both the Buyer and the Seller and gives the bottom line figure due to each party.
    
2. Tax Proration Agreement: An acknowledgment by both the Buyer and the Seller that taxes have been prorated between them using the best available information, and contains an agreement to recalculate the tax proration when the actual tax bill is available.
    
3. Notice to Buyer: General information concerning the survey and termite inspection, and clerical errors.
    
4. Purchaser's Affidavit: A statement that the Buyer has no knowledge of any matters that would adversely affect title.
    

Each Lender will have different documents for the Buyer to sign; however, almost all residential loan packages will contain the following:

1. Note: The promise of the Borrower to repay the loan, and the basic terms of the repayment.
    
2. Mortgage: The document which is recorded in the Public Records granting the lender a lien on the property to secure the loan. This document gives the lender the right to foreclose if the Borrower defaults on the Note.
    
3. Truth-In-Lending Statement: A required disclosure to the Borrower stating the annual percentage rate (this rate contains the fees charged by the lender and adds them to the note rate) and the total cost of the loan over its life.
    
4. Anti-Coercion Statement: An acknowledgment from the Borrower that the lender did not require the homeowner's insurance to be purchased from a particular company.
    
5. IRS Forms W-9 and 4506: The W-9 enables the lender to report the interest paid annually to the IRS; the 4506 is used in the event of an audit by HUD and allows the lender to obtain copies of tax returns directly from the IRS.
    
6. Payment Letter: Gives the amount and due date of the first payment.
    
7. RESPA Servicing Disclosure: Discloses to the Borrower that the lender has the right to transfer the loan on the secondary market. 8. Compliance Agreement: An agreement by the Borrower to correct clerical or typographical errors.
    
8. HUD - 1 Addendum: A statement that the HUD - 1 Settlement Statement is a true, accurate, and complete statement of the transaction. 10. Loan Application: A typed copy of the Borrower's Loan Application.
   
   Please note: each transaction is different, and as such, additional documentation may be required.