final documents of mortgage

The final documents of a mortgage loan process are the HUD-1 Settlement statement, the mortgage note, the mortgage document and others.

Sreekrowjee,

At the time of closing you will generally find the following documents:

• Note: A legal document to acknowledge debt & promise to pay according to terms of the loan. It also describes the actions lender can take in case you default on the payments.


• HUD-1 Settlement Statement: All money flowing into and out in the settlement process appears on it & is a statement of actual settlement costs.


• Truth-in-Lending statement: This statement discloses loan terms (rate, amount, apr & total payments required).


• Initial Escrow Statement: Shows the estimated insurance premiums, taxes & other charges to be paid from escrow account for the first 12 months. And lists the escrow payment amount & any required cushion amount.


• Mortgage Servicing Disclosure Statement: It is used to disclose to borrower information regarding servicing of the loan. It states whether the lender would be servicing the loan or transferring it to some other lender.

David

You can go through this page to get complete information on mortgage closing process and the statements you get at the time of closing: http://www.federalreserve.gov/pubs/settlement/default.htm

Hi Rreekrowjee,

Apart from all the documents as mentioned by David, some more documents are also required at the time of closing a mortgage. These include:

• The Mortgage or Deed of Trust: This is the "security instrument" which gives the lender a claim against your house if you fail to live up to the terms of the mortgage note. It states the legal rights and obligations of both you and the lender.
  
  
• Deed: It transfers property ownership from the seller to you. The seller must bring the deed to the closing, properly signed and notarized.
  
  
• Title Insurance Policy: Every lender will require title insurance. The company issuing the title insurance policy will have researched legal records to make sure that you are receiving clear title, or ownership, to the property.
  
  
• Affidavits or oaths: These are required by state law or the lender. You may need to sign an oath that you plan to occupy the property you're buying. If you provide false information, you can face criminal penalty.