Buying your first home is often a blur, but there is one experience that many buyers choose to forget: signing all their closing documents. At closing, you'll be presented with a stack of documents awaiting your signature. But what are you actually signing at closing? New American Funding has years of experience making your closing as smooth as possible. In fact, we have a 14-day closing guarantee! If you're worried about what to expect at closing, our guide to closing documents is the perfect companion for any first-time homebuyer.

2. What is Closing?
Closing is the final step in getting your mortgage and officially becoming a homeowner. During closing, you will sign a series of legal documents to confirm your loan agreement and finalize the transfer of the home from the previous owners to you. This guide provides an overview of the documents you will most likely encounter at closing:
•
HUD-1
•
TILA
•
Mortgage Note
•
Deed of Trust
•
Various Disclosures
•
CO

3. Closing Documents – HUD-1
The HUD-1 Settlement Statement itemizes all the expenses related to the purchase of your home. You have the right to review the HUD-1 up to 24 hours prior to the closing. Compare it to your Good Faith Estimate (GFE) to ensure there are no dramatic variations. Small differences occasionally occur, but should be confirmed. Information Included on the HUD-1
•
Purchase price
•
Financing amount
•
Loan fees and charges
•
Real estate taxes

4. Closing Documents – TILA
The Truth in Lending Act (TILA) disclosure outlines all costs associated with your mortgage loan. You should receive a copy soon after applying for your mortgage. If any of the terms have changed since you applied, you will be provided an updated TILA statement. Costs Outlined in the TILA
•
Annual percentage rate
•
Finance charges
•
Amount financed
•
Payment schedule
•
Total of mortgage payments
•
Credit insurance
•
Late fees or pre-payment fees

5. Closing Documents – Mortgage Note
The mortgage note is your legal promise to repay the amount of the mortgage loan. It provides the amount and term of the loan and the repayment schedule. It also defines what actions the lender can take
if you default on the loan.
Closing Tip: Take Your Time
Don’t feel rushed during your closing. Take time to read everything thoroughly before signing, and ask as many questions as necessary.

6. Closing Documents – Deed of Trust
The deed of trust outlines the borrower’s and lender’s rights and obligations and gives the lender a claim against the property and home if the loan is not paid in accordance with the mortgage terms. It provides the legal right for the lender to foreclose. Closing Tip: Bring Your Records While applying for your loan, you will exchange several documents with the lender. Bring copies to compare to the final documents.

7. Closing Documents – Various Disclosures
Each state has a unique set of disclosure documents home purchasers are provided at, or shortly after, closing. These documents provide additional insight into your home buying agreement and regulatory implications. Examples of Disclosures
•
Borrower Certifications
•
Compliance Agreement
•
Hazard Insurance Requirements
•
Initial Escrow Account Statement
•
Servicing Disclosure

8. Closing Documents – CO
A Certificate of Occupancy (CO) is only required if you are buying a newly constructed home. If that is the case, you need this document in order to legally take residence. The CO is issued by local regulatory authorities once they confirm the structure is safe and complies with local building codes. Closing Tip: Enjoy It You’re buying your first home. Savor every minute, even the closing. Maybe even bring a pen with some sentimental value to sign all those documents.

9. First-Time Homebuyers’
Guide to Closing Documents
To Apply for Your New Home Loan, Visit…
www.NewAmericanFunding.com