Closing Documents at Equitable Title
At the closing table, you will be presented with a significant number of closing documents that can be overwhelming and confusing. Below, we have provided samples of documents that you will encounter in almost all real estate transactions. Providing these sample documents is just another way we are leading the way in responding to consumer demand and proposed governmental mandates for increased transparency and information regarding real estate transactions and closing costs.
We have also included copies of documents and scripts that the United States Government Accountability Office (GAO) has recommended be supplied and read at closing to provide consumers with a better understanding of the documents they are signing.
The most common and standardized documents that you will encounter when you close are the:
Details the terms of the loan you are receiving, including the amount you are borrowing, the term of the loan in years, the interest rate, the amount of your payment, due dates and late fees, and other key terms.
The document that provides an itemized listing of the charges to be paid at closing. Expense items are entered on the sheet according to corresponding numbers assigned by the Department of Housing and Urban Development (HUD). Any item between 1100-1199 is an expense related to settlement services and title insurance. The totals at the bottom of the HUD-1 Statement determine the seller's net proceeds from the sale and the amount of the buyer's payment at closing.
The GAO and HUD have proposed legislation that HUD-1 Settlement Statements must be provided 72 hours before your closing. Equitable Title supports this legislation and will provide you with a draft HUD-1 Statement throughout the closing process as soon as the necessary information is received from your lender, insurance company, real estate agents, and other service providers.
A form that must be provided within three days of a consumer's application for a mortgage loan that details estimated fees and costs for your transaction. While this is a form that is provided prior to closing, it is important to have your GFE with you at the closing table. New HUD regulations require specific levels of accuracy on GFEs. Having your GFE at the closing table will allow you to compare the fees you were quoted to the fees you were actually charged.
A document that must be provided by your lender that contains information regarding the annual percentage rate, finance charges, amount financed, payment schedule, total of your mortgage payments, credit insurance, late fees, and any pre-payment fees. A preliminary copy must be provided within three days of your loan application and a final version must be provided at closing.
A document that must be provided for any loan secured by a consumer's principal residence that gives the borrower three business days to cancel the loan transaction for any reason without cost.