The Important Papers To Be Aware Of At Your New Home Closing

These days you may feel as if you need a degree in order to get through the process of purchasing a new home. From the beginning until the closing there are many things that can trip you up but in the current state of the economy it is likely that you are willing to take a chance and get a deal on a property all your own. Once all the initial paperwork has been done, a price agreed upon, and of course you have been approved for financing, the next thing that you will need to concern yourself with is the process of closing on your new home or property.
Closing is the point at which you sign forms for the agreed upon price and the money that you have borrowed and pay all of the costs connected with the process of closing. In the end, after all the payments are made you will receive full title of ownership to the property. While there will be a range of different papers that you will need to sign there are three that are of the utmost importance and that should be stored in a safe location.
One of the paperwork items that you will likely come upon at the closing will be a HUD-1. This is a statement that itemizes all of the different costs involved in your real estate purchase. It is an extremely significant paper which will be very useful at tax time and should be kept in a safe place for the duration of time that you own that residence.
An additional of these important papers is the Promissory Note. This note is like an IOU that you sign telling that you owe the lender a set amount of money for the property you are obtaining and the total amount owed to the mortgage holder. All of the terms and conditions of the loan will be contained in this legal document.
Last but not least, the Deed of Trust is an important document. Although, not used in every state many states do use them. What this document does is it indicates to whom the property belongs, and this is usually one or two individuals who are assigned as trustees by the bank. In states where this document exists it is necessary that you obtain a release of deed when the mortgage is paid in full. If you don't obtain this from the lender, then you should contact them and obtain a copy of this form for your personal records. If you don't follow through and make all of your payments these trustees have the right to foreclose on your property and sell off your home.