Closing

The loan closing is the last step in buying or refinancing your home. You and all other parties involved in the mortgage loan transaction meet to sign the required documents.

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

Closing Disclosure
This document provides an itemized listing of the final fees charged in connection with your loan. If your loan is a purchase, the closing disclosure will also include a listing of any fees related to the transaction between you and the seller. If this loan is a refinance, the settlement statement will show the payoff 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 loan estimate that is included in your application package. The Closing Disclosure is given to you three days prior to loan closing, for your review.

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

Mortgage/Deed of Trust
This document pledges a property to the lender as security for repayment of a debt. Signing this document makes it official that that you will give your property up to the lender if 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.

Recission period: If your loan is a refinance, federal law provides three days after the documents are signed for you to decide that you want to pledge your home, understanding that you could lose your home if you do not pay the debt. . Because of this waiting period, loan funds will not be disbursed until three business days have passed. More details are provided at the time of refinance closings.

Attorneys are not required, and are not common, at real estate closings in Pennsylvania. However, if having an attorney at your closing would make you feel more comfortable, we encourage you to do so.

Unless there are special circumstances, the most important documents you’ll be signing are usually prepared on or just prior to closing day. Contact your Loan Officer to discuss which documents may be available to be reviewed the day before closing.

Besides the attorney or settlement agent and possibly the seller, a bank representative will usually be at the closing to assist you and answer any questions you may have.

Homebuyers unable to attend closing have several different options, including executing a Specific Power of Attorney or having the documents mailed in advance. Whatever the case, we’re happy to work with you to meet your needs.

Automated monthly payments are available, and you will be provided with an automated payment application at closing.

The closing will take place at either the office of the bank, settlement agent, or attorney. In most scenarios, a representative of the bank will be present to assist you.