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What happens at the mortgage closing?


Think of the mortgage closing as putting "form" back into formality. You're this close to kicking back in your new home. All you need is to close the deal. It's a real estate closing so this will probably happen at a title company or an attorney's office.

You'll have a chance for a peek at many of the documents ahead of time so you'll know about your first payment, your down payment, any fees, the final loan amount and the exact dollar amount you need to bring to closing. Nothing should be a surprise at this point but if you have questions your loan adviser will have the answers.

At your closing appointment, you'll see a stack of papers with a lot of places to sign. But hey, no pain no gain. What's important to us is that you don't feel lost in the process. Even though you had a chance to preview the mortgage closing documents, the closing agent will review each of the documents one by one.

Here are the most important documents:

Closing Disclosure: This document is similar to the Loan Estimate you received early on in the mortgage process but it is the complete, final disclosure of the terms and conditions of your mortgage. It includes a detailed breakdown of all your loan fees, pre-paid taxes and insurance costs, interest rate, monthly payment and the annual percentage rate (APR) of your loan.

Note: The actual "note" is the signed piece of paper where you agree to repay your mortgage. It'll outline all the details of your loan – the interest rate and other terms of your loan including any penalties you might incur if you miss any of your payments.

Mortgage/Deed of Trust: This piece of paper is a fancy way of saying that you've pledged your property to your lender as security for your debt. In other words, if you can't pay for the mortgage, your lender can assume ownership. It's a very safe assumption that we would rather you have fun with your house.