Samples of Real Estate Documents You'll Need at Your Closing
Below, are a number of samples of documents that you will encounter in almost all real estate transactions from HUD and Good Faith Estimate to the newer replacements of these forms the Loan Estimate form and Closing Disclosure. Providing these sample documents is just another way ENTITLE DIRECT is leading the way in responding to consumer demand and proposed governmental mandates for increased transparency and information regarding real estate transactions and closing costs.
Beginning with mortgage applications taken as of 10/3/2015, two new forms will be used and provided to the homebuyer. The new forms, the Loan Estimate and Closing Disclosure, both created by the Consumer Financial Protection Bureau are designed to help consumers understand their mortgage/loan options, shop around for certain related items - such as title insurance - to save money and avoid costly surprises at the closing.
ENTITLE DIRECT is Here to Help
At the closing, you will be presented with a significant number of closing documents that can be overwhelming and confusing. No need to worry. ENTITLE DIRECT is here to help. We will work with your lender to provide copies of all closing documents for your review prior to the closing.
Here are the most common and standardized documents that you may encounter when you close:
The Consumer Financial Protection Bureau's (CFPB’s) new Loan Estimate form helps borrowers understand the full cost of the mortgage, including fees and interest. It provides a summary of key loan terms and estimates of loan and closing costs. This new Loan Estimate form replaces the initial Truth in Lending (TIL) statement and the Good Faith Estimate (GFE) and must be provided to the consumer 3 business days after the submission of the loan application. There is a section (Section C. under Loan Costs) titled “Services You Can Shop For” such as title insurance.
The CFPB’s new Closing Disclosure form helps borrowers know what to expect on closing day and how much money they’ll need to bring to the table. The 5 page form provides details about the loan terms as well as an accounting of transaction funds. The Closing Disclosure document replaces the final Truth in Lending (TIL) and HUD-1 forms and must be received by the consumers 3 business days prior to their closing.
The focus of the TILA-RESPA disclosure guide, published by the Consumer Financial Protection Bureau, is to provide the instructions for completing the Loan Estimate and Closing Disclosure. It also highlights common situations that may arise when completing the Loan Estimate and Closing Disclosure.
The Loan Note form details the terms of the loan you are receiving, including the amount you are borrowing, the term of the loan in years, the interest rate, the amount of your payment, due dates and late fees, and other key terms.
The HUD or also known as the HUD-1 provides an itemized listing of the charges to be paid at closing. Any item on the HUD form between lines 1100-1199 means that the item is an expense related to settlement services and title insurance. All EnTitle Insurance Company's title insurance premiums and fees for settlement services are guaranteed at the time your order is confirmed by one of our Closing Specialist. The totals at the bottom of the HUD-1 Statement determine the seller's net proceeds from the sale and the amount of the buyer's payment at closing.
A Good Faith Estimate form, also referred to simply as the GFE, must be provided within three days of a consumer's application for a mortgage loan that details estimated fees and costs for your transaction. While the Good Faith Estimate form is provided prior to closing, it is important to have your GFE with you at the closing table. Having your Good Faith Estimate at the closing table will allow you to compare the fees you were quoted to the fees you were actually charged.
The Truth in Lending Disclosure document must be provided by your lender that contains information regarding the annual percentage rate, finance charges, amount financed, payment schedule, total of your mortgage payments, credit insurance, late fees, and any pre-payment fees. A preliminary copy of the Truth in Lending form must be provided within three days of your loan application and a final version must be provided at closing.
A Right to Cancel form, also know as Right of Rescission must be provided for any loan secured by a consumer's principal residence that gives the borrower three business days to cancel the loan transaction for any reason without cost.