Closing Process | Closing Documents

Closing Documents

1. HUD-1 Settlement Statement: described in previous section.
2. Deed: transfers title from seller to buyer. This is the most important document at the closing. It includes:
   - the name(s) of the seller(s)
   - the name(s) of buyer(s)
   - the manner in which you want to take the title
   - legal description of the property, including the complete address
   - a statement transferring the rights and claims to the property from the seller to you
3. Mortgage and Mortgage Note: legal documents pledging the property as security that the loan will be repaid. The mortgage includes:
   - legal description and address of the property
   - name(s) of borrower(s)
   - name of the lender
   - terms and conditions of the loan
   - amount of payments
   - how, when and to whom payments will be made
   - information on possible penalties and foreclosure
4. Assumption Statement: present only when an existing loan is being taken over. The document states that the lender approves you as the new borrower, and gives the current status of the loan.
5. Releases: a document that shows any existing liens on the home have been satisfied either before or at the time of closing.
6. Bill of Sale: this document transfers ownership of any personal property included in the sale of the home, such as appliances and fixtures, from the seller to you.
7. Lien Waiver: states that neither you nor the seller have contracted for services or ordered any items that would cause a lien to be placed against the property. This includes any home improvements such as new carpeting or roofing.
8. Real Estate Tax Agreement: shows how the property taxes are adjusted and what the responsibilities of you and the seller will be in paying the taxes.