There are a number of documents that have to be reviewed and signed at the closing. Each serves a different purpose, but all – or most – are required to complete the purchase.

• The Note

  This is your contract with the lender whereby you agree to repay the loan with interest as specified.

• The Mortgage

  The mortgage provides the lender with a claim against the home you are purchasing as security for the note.

• Truth in Lending Form

  This is a form that confirms that your lender has disclosed all loan costs to you in accordance with legal requirements.

• RESPA

  This stands for, “Real Estate Settlement Procedures Act.” It is essentially a declaration that you understand the closing procedure.

• Homeowner’s Insurance

  Most lenders require that the first year’s homeowner’s insurance premium be paid in full before the loan proceeds are released at the closing.

• Closing Statement (HUD-1)

  This is an accounting of all amounts that are due to and from the buyer and seller in the transaction. The HUD-1 lists all of the uses of the sale proceeds, including the payoff of the seller’s mortgage, apportionments for property taxes, real estate commissions, etc. The statement is used to determine a final amount of cash that is due to or from the buyer and seller.