Mortgage Closings: Understand Four Key Documents

When you're closing on a house purchase, mortgage experts advise you to scrutinize and understand four key documents:

  1. Truth-in-lending statement.
    This shows how much you're borrowing, how much the financing will cost over the life of the loan, what your payment schedule will be, what your interest rate will be, and whether there are additional costs such as points and fees.

  2. HUD-1 settlement statement.
    This outlines all the settlement costs, such as origination fees and title insurance. Some--but not all--costs listed on this statement are negotiable.

  3. The note.
    This contains important financial information, such as interest rate and payment schedule. If you have an adjustable rate mortgage, the note will spell out how your rate will adjust in the future.

  4. The actual mortgage document.
    This contains clauses and conditions that--when signed--you agree to but likely never will review. Examples include clauses on hazardous waste, required occupancy of the property, and ways to communicate with the lender.

Visit Harvard Credit Union today. Chances are we'll be able to make the dream of home ownership a reality. Our loan specialists are available to make sure you understand all the fine print.




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