Real Estate Closing Survival Guide – Part II

Real Estate Closing Survival Guide – Part II

Some closings are actually two closings depending on the area (State/County) you close in. You’ll be
closing on the purchase of real estate, and you’ll be closing on the mortgage loan you are taking to buy that real estate. Some documents are common to most closings, and other documents will be unique to your area or situation.
Survival Guide Property Guiding
Sign here … and here … and here

There are real estate documents that will finally make the house yours.

  •   HUD Form 1 or Disclosure/Settlement Statement. This is one to read carefully (though, of course, all these papers are important and need to be read). The form will contain all the actual settlement costs and amounts. The closing agent will go over this document with the buyer and seller. Do pay attention.
  •   Warranty deed. This is the document that brought all these people to the table. This document should include the names of the buyer, the seller and a description of the property. Often this deed also guarantees that the seller has the right to sell the property. With the signatures of the seller, this piece of paper transfers the title of property.
  •   Proration agreements. These describe how you and the seller are divvying up the costs of the house for the month in which it is being bought. With this lots of little bits of money may go back and forth across the table — at least on paper.
  •   Name affidavit. Here’s where too many legal technicalities get annoying. This document is certifying that you are who you say you are. Not Mickey Mouse!

Mortgage documents you can expect to see, read and sign, will include:

  •   Truth in lending statement. This document will disclose the interest rate, annual percentage rate, amount financed and the total cost of the loan over its life. These are important numbers to check and double check before signing.
  •   Monthly payment letter. This document reveals the breakdown of your monthly payment into principal, interest, taxes, insurance and any other monthly escrows.
  •   Note. Take a deep breath when signing this. This is where you’re actually borrowing the money — and giving your personal guarantee to pay it back. Gulp!
  •   Mortgage. Take a second deep breath with this one. This paper puts a lien on the house as security for the loan — allowing the bank to foreclose if you default on the note mentioned above.

Part III to follow next week.

Title Junction is a full service real estate title company serving the area of Fort Myers, Cape Coral and the entire state of Florida since 2005. The company handles a number of real estate title services for both commercial and residential properties. Employees of Title Junction can also act as a witness in courtesy closings as well as an escrow agent or a notary public.

Please contact Jennifer Ferri of Title Junction, LLC for further information @ 239-415-6574 or

Posted on April 26, 2013, in Title and tagged , , , , , , , , , , , . Bookmark the permalink. Leave a comment.

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