Getting The Help You Need

2 Documents To Review And Sign At Your Real Estate Closing

When buying a piece of real estate, the real estate closing is usually at the end of a long chain of events. Not only have you had to find and bid on the property you want, you typically have had to locate financing. But to transfer the property from the previous owner to you, you will be required to attend a real estate closing. Once you arrive, your attorney will present you with a large stack of documents that require your signature. Here are a couple of documents you will be required to sign. 

1. Closing Disclosure

Your closing disclosure outlines all of the terms and conditions of one of the most significant investments most people ever make. It will outline the final costs and expenses associated with your mortgage. Some of these include:

Most lenders will provide you with this document at least three business days before your closing date. This time is for you to review the document for accuracy and formulate any questions about the form. If you do not receive your closing disclosure until the day of your closing, your attorney will not finalize the actual sale until three days later. 

The numbers in your closing disclosure form will reflect the finalized numbers estimated in your loan estimate. Even if you receive this document days before your closing, changes made to certain key areas will require your lender to give you additional days to review and decide whether or not to proceed. 

2. Escrow Account Statement

Your lender will use the funds in your escrow account to pay your property tax and insurance premiums. Due to annual changes in these costs, your escrow account is very fluid and may not contain enough funds to cover these expenses in subsequent years.

The escrow statement you sign at your real estate closing outlines how much of your payment will go into this fund during the first year. Once you own your home, your lender will send you an annual escrow statement.

If you have overpaid and your escrow account has excess funds, your lender will refund the funds to you. If you underpay and owe additional funds, your lender will usually pay these funds for you. The lender will recoup these costs by increasing your escrow account over the following year, which in turn will increase your mortgage payment. 

For more information, contact a professional like Cornelius F Sullivan Attorney.