Once you’ve reached the closing phase of buying a house, your excitement about moving in is likely at an all-time high. Closing title companies require several documents to help the transaction go smoothly and quickly. Whether you’ve just started your real estate property search or are nearing the end, here are some important pieces of paperwork that will be presented at closing. 

What Documents Do Buyers Need to Close on a House?

1. Deed 

This will be the official record of the home being transferred from the seller to the buyer. Once the papers are signed by both parties, the deed will be processed in the local county’s recorder of deeds office. Anyone looking up ownership of the property in the office’s files will be able to find the home’s current owner.

2. Closing Disclosure

From the home’s costs and property taxes to loan fees and mortgage payment schedules, the closing disclosure provides detailed information about the entire transaction. Agents with closing title companies will typically review this document with the seller.

The paperwork also includes other key details, such as the loan’s interest rate and the amount being financed. In most states, the closing disclosure is required to be submitted to the seller at least three business days before the closing takes place. 

3. Title Insurance Commitment

Sellers will also receive this document that shows the property will be titled to them. Title insurance company agents will also include whether there are any liens on the home. Depending on the closing transaction, the liens may need to be paid or settled as a condition of the sale. If an escrow company is involved, their role is to ensure the title meets proper escrow guidelines, as well as the home loan provider’s financing requirements. 

4. Promissory Note

When the buyer signs this document, it means that they have agreed to repay the home loan provided by the bank or other lender. The mortgage payment schedule, total loan amount, loan term, and interest rate are just a few of the details contained in the promissory note. The lender will also typically include any penalties that will be enforced if the seller doesn’t repay the loan as promised. 

Since 1989, First Financial Title Agency of Minnesota Inc. has helped individuals navigate the process of buying and selling residential and commercial properties. This firm is based in Burnsville, MN, and serves Dakota County residents. The agents at this experienced closing title company know the legal requirements involved in closing processes. Their team will thoroughly review every detail of the transaction to ensure all documents are presented and filed properly. To learn more about their services, call (952) 831-5010 or visit them online.