At this point, the lender will put together the Closing Disclosure (CD) and provide it to you. A CD is a five-page form that provides final details about the mortgage loan you have selected. Unlike the Loan Estimate (LE) that you received at the very beginning of the process the numbers in the CD are not estimates, they are meant to be precise and final. The CD includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage (closing costs). You must sign it, and then, according to federal law, there is a three-day waiting period after it is signed before the loan can be closed. This is meant to ensure that you (the borrower) has sufficient time review and fully understand the costs. • Check the spelling of your name. • Check that loan term, purpose, product, and loan type match your most recent Loan Estimate • Check your interest rate. • Does your loan have a prepayment penalty? • Check that your Estimated Total Monthly Payment matches your most recent Loan Estimate. • Check to see if your estimated taxes and insurance, are or are not in escrow. • Check that your closing costs match your most recent LE. • Check that your cash to close matches your most recent LE. Items to check on your CD: ur CD: Then comes the closing, the moment everyone has been waiting for. The buyer and the seller, real estate agents, and maybe an attorney, sign the final paperwork. The deal is closed and the keys to the home are handed to you.
35
Powered by FlippingBook