Step 3
Ok, you've found your dream home and you've applied for a mortgage; now comes time to CLOSE ON YOU FIRST HOME.
Closing is the completion of the real estate sale and mortgage loan transaction. Many parties will attend YOUR closing, the seller, YOUR realtor from American Real Estate, YOUR mortgage expert from PLB Lending, and a representative from the title company.
Closing Documents - What to except you will be signing at YOUR Closing
You'll need to sign several documents, which complete the entire process. These include the
- HUD-1 settlement statement (a list of all the closing costs and fees) you'll and/or the Seller will need to pay in connection with your loan;
- the mortgage note which says you promise to repay your loan;
- the mortgage which provides a detailed legal description of the property you're buying and confirms the property as collateral for repaying the loan;
- the Truth-in-Lending statement which states your annual percentage rate (APR);
- the monthly payment letter which shows a breakdown of your monthly mortgage payment.
Closing Fees
You OR the Seller will have to pay closing costs which may include:
- Appraisal fee,
- Credit report
- Processing fees
- Title fees
- Underwriting fees
- points. Closing costs will vary on every loan
In addition to understanding the mortgage process, it's good to know the ALL of the costs associated with your mortgage ahead of time so you're fully prepared for closing.
CONGRATULATIONS!!!!
YOU ARE NOW A NEW HOMEOWNER
REMEMBER -You Qualify for the $8000 First-Time Homebuyer Credit
Everyone's talking about the $8,000 home loan tax credit for first-time home buyers that's part of the new $787 Billion Stimulus Plan. The intention of the credit is to encourage home sales to help stabilize housing prices, minimize foreclosures and help the economy. This is great news for the personal economies of first-time buyers! Take advantage of President Obama's housing bailout plan.