At your closing, both the buyer and seller sign a number of documents. All of these documents are required by law to transfer property from seller to buyer and to protect the buyer's lender.

The Shuping, Morse & Ross attorney assigned to your closing will review each document with you. Many of the documents are general disclosure forms required by law, but some refer specially to the buyer's mortgage. These include:

Borrower's Certification and Authorization

This document certifies that the information you provided in your loan application is true and complete. It also authorizes your lender to release information about your mortgage in the event that an investor purchases your loan.

Escrow Account Disclosure Statement

This document estimates the activity in your escrow account for the first year of your mortgage. Most homebuyers choose to escrow money each month for their property insurance and taxes. This way, insurance and taxes are paid automatically out of the escrow account. The homebuyer doesn't have to pay a large lump-sum or keep track of due dates. If you do elect to pay into an escrow account, this document will show the first year of deposits into and payments out of the account.

HUD-1

This document is also known as your Closing Statement or Settlement Sheet, and it documents all the costs associated with your mortgage transaction. Whereas you received estimates of these costs on your loan officer's Good Faith Estimate, the HUD-1 shows the actual costs. View a sample HUD-1...

Note

This is essentially the contract between the buyer and the lender specifying the terms of your mortgage. It spells out the loan amount ("principal"), your interest rate, when payments are due, the address to which your payments should be sent, late fees, and other information related to your mortgage.

Right to Cancel (Refinances Only)

This document notifies you of your right to cancel the refinance transaction within three days after closing.

Security Deed

This document is also known as a Deed of Trust or Mortgage. It conveys a lien on your property that entitles your lender to foreclose on your property and sell it if you fail to make the mortgage payments.

Temporary Payment Coupon

Within a few weeks of your closing, you will receive a coupon book from your lender. In the meantime, you will use the information on the temporary payment coupon to make your monthly mortgage payment.

Title Insurance Policy

This documents your title insurance coverage, which protects your equity in your home in the event of title disputes steaming from errors in public records. Following your closing, this document should be kept in a safety deposit box, as your title insurance policy is not kept on record with your closing attorney.

Truth-in-Lending Statement

This document provides a calculation of your total interest payments over the life of your mortgage and declares any pre-payment penalties.

Warranty Deed

This document actually transfers the property title from the seller to the buyer.