Legally binding documents
Here are samples of the Top 3 most important documents you will review and sign at the settlement table. Find a more detailed explanation of each toward the bottom of this page.
Closing Disclosure Form
The Closing Disclosure form consolidates the final Truth in Lending disclosure with the HUD-1 and must be delivered to the consumer at least three business days prior to the scheduled closing date. This is known as the 3-Day Rule.
A three-day window is great for consumers who can use the time to fully review their documents, ask questions and gather funds and other items needed for closing, but the 72-hour window is firm.
Deed of Trust
This is your mortgage. The Deed of Trust is a lengthy document (approximately 7 to 12 pages) requiring the signature of all owners of the property for the purpose of granting a security interest. After closing, the Deed of Trust is recorded with a legal description as a lien among the land records and as a matter of public record for the purpose of securing the borrower’s promise to repay on the Deed of Trust Note/Promissory Note.
In addition to identifying the property owners, the loan amount and the term of the loan, the Deed of Trust generally describes matters that would constitute a default on the loan thereby giving the lender cause to commence a foreclosure proceeding against the property.
The Note, sometimes referred to as either the Deed of Trust Note or Promissory Note, is the borrower’s promise to repay the loan. The note identifies the amount of the loan, the rate of interest, the term of the loan (i.e., 30 year, 15 year, etc.), the payment due dates, the grace period and late charges, prepayment penalty provisions, and other general default provisions.
Types of notes
Lender documents that disclose various details about your loan and/or lender; non-binding.
- Affiliated Business Arrangement (if applicable)
- Borrower Certifications
- Compliance Agreement
- Escrow Reserve Account or Waiver Agreement
- Hazard Insurance Requirements
- Initial Escrow Account Disclosure Statement
- Servicing Disclosure
- Truth in Lending Disclosure