By the time you get to closing on your new home, you have seen plenty of paperwork! Between the purchase agreement and the mortgage documents, you have signed many pages! So now – how much of this paperwork at closing do you need to really read?
There are some pages that you do need to look at and make sure they are correct. You want to make sure the information on the final loan application is correct. You want to compare the numbers between the loan estimate and the closing disclosure and make sure they are accurate. You also want to make sure the note is accurate -that is your promise to repay the loan, you need to make sure the address, interest rate and your names are accurate.
There is a lot of “boilerplate” information -things that you can’t change. The mortgage is several pages long and goes into more information than the note. It explains that you are required to keep insurance on the property, you are required to pay back the mortgage and the process if you default on the mortgage. It’s a great thing to read some night if you can’t fall asleep! There are many short forms that talk about things like flood insurance, your payments are reported to the credit bureau, escrows for taxes and insurance, agreeing to resign docs if something is missed, etc.
If you are the type of person that likes to read everything before you sign it, ask to get a copy of the docs ahead of time. Your lender can arrange with the title company to get you docs ahead of time. That way you have time to look over everything and make sure it’s accurate. If you have questions, there will be time to answer them and make sure you are comfortable with everything you are signing. At closing, there really isn’t a lot of time to read every page. You want to make sure your name, address, interest rate, program and terms are correct.
The reality is if you want the home and need a mortgage to buy the home, you will need to sign everything. Sometimes I tell people that the mortgage basically says if you pay,you stay, if you don’t pay, you will lose the home! Granted there is a lot more information than that, but that’s the short answer! Some of the forms are sent to you early – like the closing disclosure – look at it, make sure you understand it and that the numbers are what you expect. You will receive that form at least three days before closing, so there is time to make changes if need be.
The best part about closing is that you get the keys to your new home!! Now you can finally move in and make it yours!! Closing is like a celebration – your new home is finally yours!
Leslie Vanderwerf, NMLS ID#335509, American Mortgage & Equity Consultants, Inc., An Equal Housing Lender, NMLS#150953 – Email – Website
