Closing Documents

Alta Settlement Closing Disclosure Form

This is a standard form in use in the United States of America (and has become standard for all closings, including cash closings) which is used to itemize services and fees charged to the borrower by the lender or broker. The form is filled out by the settlement agent who will conduct the settlement. It should be carefully reviewed. A list of charges to each party is shown with a total at the bottom. The front page is a summary of the transaction for each party. For the buyer it will be sales price plus any prorated charges in the top section, and the lower section lists credits such as loan amount(s), earnest money paid, and other credits. The sellers column will show sales price plus any prorated credits to the seller in the top section and in the second section, will be listed any reductions in the amount of the seller’s proceeds such as payoffs of mortgages, taxes due, etc.

PROMISSORY NOTE (Fixed Rate Note and Adjustable Rate Note)

This important document represents the borrower(s) promise to repay the debt created by the loan. Review this carefully at closing. It will contain the amount of money being borrowed, the interest rate, the loan term, payment due dates, Prepayment and late payment penalties and/or fines as well as grounds for default.

 

Deed of Trust (Mortgage)

A deed of trust, also called a trust deed  is used in some states in place of a mortgage, a transfer of interest in land by a mortgagor-borrower to a mortgagee-lender to secure the payment of the borrower's debt. Although a deed of trust serves the same purpose as a type of security, it differs from a mortgage. A deed of trust is an arrangement among three parties: the borrower, the lender, and an impartial trustee. In exchange for a loan of money from the lender, the borrower places legal title to real property in the hands of the trustee who holds it for the benefit of the lender, named in the deed as the beneficiary. The borrower retains equitable title to, and possession of, the property.

Other Documents

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