Learn & Earn / Closing Process / Next Topic
Closing Checklist Seller or developer must have brought a smoke detector certificate, tax bill, deed, water & sewer bill, occupancy permit, oil storage permit, oil tank reading, etc.
- Buyer must have an Insurance Binder - paid one year in advance.
- Note
- promise to pay the mortgage amount. Amount & Interest rate. Are there prepayment penalties? 3% penalty if late. 30 days notice to take care of it. Must sign exactly. Don't sign more that one unless marked "COPY"
- Mortgage
- security for the note; your new house. Escrow of taxes and insurance. Must be principal residence. Must keep it in good repair. No need to put your Social Security Number in it even though it asks for it. Paragraphs 1-20 standard nationally. Paragraph 21 is foreclosure. A second photocopy of the mortgage goes on file for the lender.
- First Payment Letter
- where to send it
- Plot Plan
- will show any easements, location of improvements on lot. Not an instrument survey it's only a tape survey. (e.g. can't use it to determine where a fence can go)
- Flood zone
- A, B, or C - Zone C no need for flood insurance
- Certification of Record of Title
- Good marketable title. Records any easements, protective convenants, orders of compliance, etc.
- Typed Loan Application
- simply a typed version of your application
- Good Faith Estimate
- asked to sign a copy of
- Loan Endorsement
- the note or loan has been or will be sold. For example, from AMCA to Sears Mortgage Corp. Only difference is where you mail it!
- Tax Escrow
- adjusted between buyer & seller. Bills come in Oct., Jan., April, & July. Lender won't pay it unless they get the bill from you. May go to seller be mistake for a year.
- Escrow Account Disclosure
- you get about 1% interest in it if you're lucky. You need 20 to 30 percent down to avoid escrow.
- Truth & Lending
- gives the APR which includes points. Tells how much you will pay over length of loan.
- Authorization for Owners Title Insurance
- FNMA Affidavit - verifies price of property & you are borrowing the money only for the financing of this specific property, you will occupy within 30 days, no silent 2nds allowed
- HUD Settlement Statement (RESPA)
- shows the numbers for the buyer and seller. POC means paid outside closing. Should have reviewed before the closing table.
- Compliance Agreement
- allows for mistakes to be corrected
- Lead Paint
- compliance with statute; bank is indemnified; don't want to be sued on basis that buyer's didn't know
- UFFI
- no knowledge of any in the property
- Asbestos
- no knowledge of any in the property
- Title V Septic -
certification of compliance with regulations
- Smoke Detectors
- buyer agrees to maintain
- W-9
- to report interest paid on the loan
- Buyer to show driver's license & swear signing is free and voluntary act.
- Both spouses are generally required to attend the closing - check with conveyance attorney.
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