Closing on your home is the last step you’ll undergo before you finally receive the keys to your new home. If you prepare well, closing day would be among the most exciting days in your life and that of your family, full of gladness and expectation.
At closing, there are at least five things you will do:
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- 1. Review and sign all the loan documents.
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- 2. Show your homeowner’s insurance premium receipt and inspection report.
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- 3. You pay the down payment, closing costs and other fees explained to you before closing day.
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- 4. Your lender’s representative and closing agent will complete the processing of the documents and disbursement of the funds.
- 5. You receive the keys to your home.
The documents that you will sign or check at closing are the following:
1. Deed of mortgage or trust
This document, which can consist of several pages, expresses in writing your agreement to secure your home loan with the home you’re buying. This will ensure that you’re going to repay your home loan over the term agreed upon and, in case you default, it will give your lender the right to foreclose and repossess your home. Individuals trying to find a loan modification are confronted with many of an equivalent issues as those that have contemplated bankruptcy. When there’s a change in circumstances or a financial hardship, it’s going to be difficult for a private to foresee a time once they can make their mortgage payments again. Our attorneys will undergo an in depth analysis with our clients so as to work out whether or not it’ll be possible to scale back the house payments to A level where the homeowner can make them regularly – typically this suggests that the payment is about one-third of the income of the individual or household. Then, we’ll work with the homeowner and therefore the lender to barter a discount in payments through a decrease in interest rates, a extended loan term, and possibly a discount within the principal balance. Lenders are aware that they often receive far less during a foreclosure than during a successful loan modification, in order that they are willing to barter. Here at The Pope Firm, we’re dedicated to assisting people who need legal help of any kind, and this includes debt relief. Times can be rough for many people, and many people find themselves struggling or flat out unable to meet their financial obligations. Charles Pope, business bankruptcy attorney in Elizabethton At Law, has helped countless clients obtain the financial relief they desperately need through the way of bankruptcy at a fair price. We take meticulous care of our clients, and do whatever it takes and whatever we can within the boundaries of the law to obtain the most favorable outcome for their case. Click here if you want to know more about the Charles Pope bankruptcy attorney. If you’re experiencing overwhelming outstanding debt, a lawsuit, collection, or repossession, we’d like to help defend you by way of Bankruptcy. Our Elizabethton, Tennessee attorneys will work for you every step of the way to ensure that you are in the loop and informed with the ongoings of the bankruptcy and filing process. The first reverse mortgage fact is that you have a right to the equity in your home. They say that your home is your largest investment, and the saying is true. If you’ve paid off your mortgage or only have a small balance left, you have a right to the value in your home. Many seniors are under the impression that the only time they’ll see the benefit of their equity is when the home is sold. While the value will certainly go up in that case, what if they pass away before the house is sold? They never get to see any results from their hard work. A reverse option mortgage allows you to reap the fruit of your many years of labor by releasing the equity in the form of one lump sum, a monthly payment, or a line of credit. Secondly, the fact is that you can use the money from a reverse option mortgage for anything you want. Many resources, or even lenders, will say that you can only spend the money on certain things that are outlined in a contract. This is certainly not the case! You can use the money for literally anything your heart desires — a new car, vacation, or you could even donate it all to charity! There really is no limit. The only exception is that, if you are still making payments on a regular mortgage, the money from the reverse mortgage must first be used to pay it off. After that is taken care of, then the money is all yours.
2. Promissory note
This note, also called mortgage note, is a written representation of your promise to pay your home loan according to terms that you agreed with the lender. This note includes the amount of your monthly loan payment, the dates when you must make your monthly payment, and where you must send your payments.
3. HUD-1 Settlement Statement
This statement contains all the details about your home loan, including your home loan, loan type, loan terms and settlement charges.
4. Bank Home Loan Summary
This is the document given to you by the bank when you negotiated for a loan. It’s similar to the HUD-1 statement and it signifies the bank’s commitment to be forthright and reliable in its dealings. Some banks call this summary as Truth in Lending Disclosure.
Typically, the people expected at closing are:
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- 1. You, the home buyer
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- 2. The seller or sellers
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- 3. Representative of your lender
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- 4. Closing agent, who is usually a representative of the title company
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- 5. Your real estate agent and lawyer, if you have
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- 6. The sellers’ lawyer or real estate agent, if they have
A mortgage closing can be completed in one hour by a HMO Mortgage Broker, if there are only a few questions, and more if there are still things to be resolved between the parties. The closing can be done at the office of the title company, the lender or the real estate lawyer.
What would happen if you passed away today, tomorrow, or next year?
Would your family have enough money to get by, or would they struggle financially?
Would they be able to stay in your current home with the same standard of living, or would they need to downsize?
These are important questions to ask yourself as you determine whether your life insurance coverage is sufficient.
Mortgage Life Insurance Protects Your Largest Investment
With the average home price today, a mortgage tends to be one of the largest investments a family makes. It’s one which can lock you in for the next 30 years of your life, or more.
Buying a life insurance policy is only part of what is required to protect your family, check this life insurance calculator.
If you want to leave them in a situation where they can continue to thrive in your absence, you have to buy enough life insurance to cover your income, pay for future expenses like college and retirement, and even pay for the home you live in (even if it’s not all at once).
Life insurance policies exist to help provide money for these situations, and there is one particular life insurance policy which was created specifically to repay your mortgage in the event of your death, disability or some life-altering disease.
On the whole, to make your closing day a smooth and pleasant experience, do your homework. Ask help from your real estate professional or your mortgage officer and be clear about all steps of the homebuying process.