Before closing on a mortgage, you can expect to receive documents required by state and federal law and contractual documents.
You can expect to receive various types of documents:
Documents required by federal law
These documents inform you of the key terms, provisions, and costs of your loan. They outline your key rights and responsibilities as a borrower, and record the transaction between you and your lender.
You will need the following documents:
1) The Notice of the Right to Rescind: for loans not used to purchase a home, for example, a refinance or home equity line of credit. This notice informs you that you have three business days from the lender’s fulfillment of certain conditions to cancel your loan and provides a form for cancelling the loan.
2) The Closing Disclosure: is a form that lists all final terms of the loan you’ve selected, final closing costs, and the details of who pays and who receives money at closing. Your lender sends you a Closing Disclosure at least three business days before closing. Visit our interactive sample Closing Disclosure with tips and definitions.
- If you applied for a mortgage prior to October 3, 2015, or if you're applying for a reverse mortgage, you receive a HUD-1 Settlement Statement and a Trught-in-Lending disclosure instead of a Closing Disclosure.
3) The Loan Estimate: is a form that lays out important information about the loan you applied for. The lender sends you a Loan Estimate within three business days of receiving your application. Visit our ineractie sample Loan Estimate with tips and definitions.
- If you applied for a mortgage prior to October 3, 2015, or if you're applying for a reverse mortgage, you receive a Good Faith Estimate (GFE) and a Truth-in-Lending disclosure instead of a Loan Estimate.
4) The Initial Escrow Statement: which lists the estimated taxes, insurance premiums, and other charges the lender anticipates paying from your escrow account during the first year of your loan.
If the lender fails to give you two copies of the right to rescind or accurate Truth-in-Lending disclosures on the Closing Disclosure or Final Truth-in-Lending disclosure, you have the right to cancel the loan for up to three years.
Contractual documents include:
- Lender documents: These are documents added by the lender, for example, an affidavit of occupancy.
- A mortgage or security instrument: This explains your responsibilities and rights as a borrower. The mortgage grants the lender or servicer the right to foreclose on your home if you fail to make payments as you’ve agreed.
- A promissory note, which describes what you are agreeing to. It provides you with details regarding your loan, including:
- The amount you owe
- The interest rate of the mortgage loan
- The dates when the payments are to be made
- The total amount you will pay
- The length of time for repayment
- Whether and how the payment amounts can change
- The place where the payments are to be sent
- State and local government-mandated documents: These are documents that fulfill state and local government requirements, generally for the purpose of collecting information and protecting you.
The CFPB has resources to help you review your closing documents:
- Our closing checklist helps you know what to expect at closing and what questions to ask.
- Our guide to closing forms helps you spot what to look for in your promissory note, mortgage (security instrument), initial escrow disclosure, and right to cancel.
- Our interactive guide to the Closing Disclosure helps you double-check the details and get definitions for unfamiliar terms.
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