The mortgage process is filled with a multitude of steps that go beyond the application and approval process. After an application is approved and all of the supporting documentation is received, the lender will schedule the closing. Mortgage Marvel's "Loan Closing and Beyond," frequently asked question section provides consumers with insight surrounding what can be expected at closing and beyond.
mortgage marvel logo

Frequently Asked Questions About the Loan Closing and Beyond

home > learning center > faqs > loan closing and beyond
What happens at the loan closing?
Who will be at the closing?
Can I get advanced copies of the documents I will be signing at closing?
Will I need to have an attorney represent me at closing?
Will I always make my mortgage payment to the lender I applied for a mortgage with?

What happens at the loan closing?

During the closing, you will be reviewing and signing several loan papers. The closing agent or attorney conducting the closing should be able to answer any questions you have. If you are purchasing an existing home, the seller may also attend or may execute their documents in advance.

If you need to bring any money to closing to complete the transaction, those funds typically have to be certified by using a cashier's check or money order. The lender should make sure that you know the exact amount you need to bring a day or two before closing.

Typically the closing itself takes less than an hour. The thing you do most at the closing is sign your name to all the closing documents.

The most important documents you will be signing at the closing include:

HUD-1 Settlement Statement
This document provides an itemized listing of the final fees charged in connection with your loan. If your loan is a purchase, the settlement statement will also include a listing of any fees related to the transaction between you and the seller. If the loan is a refinance, the settlement statement will show the pay off amounts of any mortgages that will be paid in full with your new loan. Most items on the statement are numbered according to a standardized system used by all lenders. These numbers will correspond to the numbers listed on the Good Faith Estimate provided after completing the application. This document is also commonly known as the closing statement and both the buyer and seller must sign this document.

Truth-in-Lending Statement (TIL)
This document provides full written disclosure of the terms and conditions of a mortgage, including the annual percentage rate (APR) and other fees. It is exactly the same as the TIL that you received immediately after your initial application, except that it has been updated to reflect the final rate and fee information. Federal law requires that all lenders provide you with this document at closing.

Note
This is the document you sign to agree to repay your mortgage. The note will provide you with all of the details of your loan including the interest rate and length of time to repay the loan. It also explains the penalties that you may incur if you fall behind in making your payments.

Mortgage / Deed of Trust
This document pledges a property to the lender as security for repayment of a debt. Essentially this means that you will give your property up to the lender in the event that you cannot make the mortgage payments. The mortgage restates the basic information contained in the note, as well as details the responsibilities of the borrower. In some states, the document is called a deed of trust instead of a mortgage.

If your loan is a refinance, Federal Law requires that you have three days to decide positively that you want a new mortgage after you sign the documents. This means that the loan funds won't be disbursed until three business days have passed. The closing agent will provide more details at the closing.
back to top

Who will be at the closing?

Generally the closing will take place at the office of your lender, a title company or at an attorney's office. Some lenders have title companies or attorney's act as their agent and the bank representative you worked with may not attend the closing. If you are purchasing a new home, the seller may also be at the closing to transfer ownership to you. In some states these two events happen separately.
back to top

Can I get advanced copies of the documents I will be signing at closing?

Your lender should be able to provide you with copies of all the documents you will be signing at least 24 and generally 48 hours in advance. This will give you plenty of time to read them in advance so that you aren't under the pressure of reading them at the closing table.
back to top

Will I need to have an attorney represent me at closing?

In some areas of the country it is customary, and sometimes required by law, to have an attorney represent you at the closing. In other areas, attorneys are not as common at a real estate closing. Please contact the closing agent if you have questions about attorney representation. We recommend that you have an attorney at the closing if it would make you more comfortable. If your attorney has any questions about your new mortgage, please refer them to your Loan Advisor, who would be happy to provide any information necessary.
back to top

Will I always make my mortgage payment to the lender I applied for a mortgage with?

Not necessarily. Some lenders transfer the collection of payments (sometimes called “servicing”) to another entity either immediately after closing or sometime during the life of the loan. By federal law, a lender must inform you of their intentions regarding loan servicing transfers at the time of application but this is only a general indication of what may happen. A lender is always able to transfer servicing at any time. The form the lender must provide you with that provides their expected action with your mortgage is called a “Servicing Disclosure Statement”.
back to top
© 2012 Mortgagebot LLC, a wholly owned subsidiary of Davis + Henderson Corporation