Three days before your actual closing date, your lender is legally obligated to give you the Closing Disclosure. This five-page document details all of the terms and fees that will be associated with your new mortgage. Once in hand, Irvine realtors encourage you to review this document diligently to make sure that you fully understand the fine points of your funding arrangement and that no fees have been miscalculated or otherwise misrepresented. Borrowers are given this three-day period to identify and resolve problems with their home mortgage loans before heading to the closing table.
Your Original Loan Estimate
At the start of the funding process, borrowers are given their Loan Estimates once their loan applications have been approved. The Loan Estimate includes a comprehensive breakdown of all fees and payments that must be made over the lifetime of the loan. Your Closing Disclosure should contain all of the same information that was present in this estimate. Although these two documents are not laid out in the exact same way, they are designed to be easy for consumers to compare.
What Your Closing Disclosure Will Include
The first page of the Closing Disclosure will show your total loan amount, the interest for your loan, your monthly principal and interest payment, and any balloon payment or prepayment penalties that you will be charged. You will also find a breakdown of your payments throughout the lifetime of your mortgage loan. This first page additionally details the total estimated closing costs and the amount that will be deposited into your escrow account.
More detailed information of your closing costs can be found on page two. All transactional fees, whether these are paid by the buyer, the seller, or a third-party, will be listed on this page as well. The third page of the Closing Disclosure should closely resemble the second page of your Loan Estimate. Here you will find a Calculating Cash to Close table that you can compare to the charges that were disclosed early on in the funding process. The final pages of this document clarify the conditions of the loan, such as whether or not the loan is assumable and how much you will wind up paying in total.
Signing the Closing Disclosure
The fifth and final page of your Closing Disclosure will have signature lines and your printed name. Read the fine print beneath these lines carefully. Signing your Closing Disclosure does not mean that you have officially accepted the loan. Instead, it merely indicates that you have received and reviewed this document.
Working with an experienced real estate agent in Irvine can make the home-buying process as stress-free as possible by guiding you through the process, explaining complex real estate terms, and working on your behalf to protect your interests. Find an agent you can trust by visiting our website at http://www.irvineresidentialliving.com/ or calling us today at (714) 454-6304.