What to expect.
Understand the home loan process from application through closing.
Here is a quick overview of the closing process. A Home Loan Specialist can answer any questions you may have.
Settlement costs and payment
Typically at closing, you review and settle any costs and credits, including closing costs, earnest money deposits (if you are buying a home), taxes, escrow and insurance (if applicable). These costs and credits are outlined in the Closing Disclosure that you will receive at least three business days before closing. Be sure to review it prior to closing, compare it to the Loan Estimate you received just after you applied, and check with your Home Loan Specialist if you have any questions.
At the closing, the majority of your time is spent reviewing and signing closing documents with the details and terms of your loan. These include:
Be sure to ask your Home Loan Specialist or closing agent if you have any questions about what you are signing.
Earnest money deposits, also known as a Good Faith Deposit, is a down payment given to the seller by the buyer once the purchase agreement contract is signed that shows that the purchase offer is being made in good faith. If the buyer defaults on the purchase agreement, the seller usually keeps some or all of the deposit.
Escrow is the payment made each month to the servicer that is used to pay the taxes and insurance due on your home each year.
We may require you or you may choose to set up an escrow account when you close your loan. If so, we will add payments for taxes and insurance to your monthly mortgage payment and hold these payments in the escrow account for you. When your taxes and insurance are due each year, we will pay them for you from your escrow account.
TRID is an acronym for TILA (Truth in Lending Act) RESPA (Real Estate Settlement Procedures Act) Integrated Disclosure. For most closed-end loans, two new forms replace the old Good Faith Estimate (GFE), Settlement Statement (HUD-1), and TILA Disclosure. The first form, the Loan Estimate, is designed to provide disclosures that will help you understand the key features, costs, and risks of the mortgage loan for which you are applying. We will provide you a Loan Estimate no later than three business days after you submit your loan application. The second form, the Closing Disclosure, is designed to provide disclosures that will help you understand all of the costs of the transaction. We will provide you a Closing Disclosure at least three business days before you close your loan.
The Mortgage/Deed of Trust is a document by which you pledge your house as security for repayment of your home loan. You are agreeing to give up your property to ditech if you cannot make your mortgage payments or otherwise default on your home loan.
A Promissory Note is your promise to pay your mortgage. The promissory note tells you what the principal and interest payments are, when they are due, where to send them, and what penalties will occur if you don’t pay.