Closing on a home brings excitement and a sense of opportunity. Before you close, though, real estate law requires you to review and sign several legal documents. Here’s what you should know about this paperwork. 

What Documents Are Needed for Real Estate Closings?

1. Loan Application

When you applied for your home loan, you completed an application. On closing day, you’ll be asked to sign a copy of it. Before you do, review the document for accuracy, and tell the lender if you’ve taken on new debts, switched jobs, or made other relevant changes since you applied. 

2. Closing Disclosure

This essential document describes the closing costs and the final terms of your loan, including the projected monthly payment, interest rate, and annual percentage rate. Your lender will give you the closing disclosure at least three business days before closing day so that you have time to review it for accuracy. It’s usually about five pages long. 

3. Mortgage & Mortgage Note 

You’ll need to sign the mortgage, also called a deed of trust or security instrument, which puts up your house as collateral. This document gives your lender the right to foreclose on your home should you default on the loan. You’ll also sign the mortgage note, a 7- to 12-page document that details the terms of the loan and legally binds you to repaying it.

4. Title 

According to real estate law, the title declares that you own a right to the property. There may be several documents related to the title, but the most important one is the title insurance “commitment.” Before closing, review this document carefully to ensure it doesn’t contain any unexpected information or complications, namely liens (legal claims due to unpaid debt). 

5. Deed

The deed is the legal document that transfers the title, or the right to own the property, from the seller to you. The seller will sign this document, but you’ll review it for accuracy. Then, the county recorder of deeds will record the signed deed, officially declaring your right to own the property.

Simplify your closing with the help of Bernardini Law P.C. Based in North Andover, MA, attorney Christine Bernardini has over a decade of experience working in real estate law. She’ll help you review and complete all paperwork carefully and efficiently so that you can enjoy a stress-free closing day. Learn more about her services online, or call (978) 794-5525 to schedule a consultation.