The definition of mortgage term: Closing Docs
Signing the closing documents in front of a notary is one of the last steps before your loan is funded. These documents typically include the Loan Note, Mortgage or Deed of Trust, HUD-1, Title Insurance Policy, and Truth in Lending Disclosure. The Loan Note provides a detailed description of the terms of the loan including the total loan amount, interest rate, term of the loan, amount of the payments, and other information relevant to the repayment of the loan. The Mortgage or Deed of Trust is a contract offering your home as collateral for not repaying your loan. The HUD-1 details the total cost of obtaining the loan including closing fees and fees charged by the lender. The Title Insurance Policy protects you and the lender against financial loss if a problem were to arise in the future with the title. The Truth in Lending Disclosure is the final version of the same document previously provided. If purchasing a new home a Deed Transfer will also be included in the closing documents. The deed transfer is a document that is signed by both the buyer and the seller documenting that there has been a legal change of ownership.
Go back to the Mortgage Terms page to learn more!