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Closing and Beyond 

Hurray! Your loan has been approved and your loan closing date has been set! This section will give you some idea of what to expect at closing and what happens after closing.

The closing may take place at the office of a title company, an attorney, or possibly one of our branch locations in your area who will act as our agent. If you are purchasing a new home, the seller may also be at the closing to transfer ownership to you if you are purchasing a new home. However, these two events actually happen separately in some states.

You will be reviewing and signing several loan documents during the closing. The closing agent or attorney conducting the closing should be able to answer any questions you have or you can feel free to contact your Mortgage Loan Closer if you prefer.

Your Mortgage Loan Closer will contact you a few days before closing to review your final fees, loan amount, first payment date, etc. to be proactive and make certain there are no unforeseen circumstances at closing.

 

The most important documents you will be signing at the closing include:
Closing Disclosure (Formerly known as the HUD-1 Settlement Statement – change effective 10/2015)

This document provides an itemized listing of the final fees charged in connection with your loan. If your loan is a purchase, the closing disclosure will also include a listing of any fees related to the transaction between you and the seller depending upon the type of loan product. The closing disclosure will show the payoff amounts of any mortgages that will be paid in full with your new loan if the loan product is a refinance. Most items on the closing disclosure are itemized to a standardized system used by all lenders. These itemization will mirror to the standardized system listed on the Loan Estimate (formerly known as a Good Faith Estimate – change effective 10/2015) that will be provided in your application package. This document at closing is also commonly known as the closing disclosure and both the buyer and seller (if a purchase) must sign this document.

All of the information in this paragraph is true except that the Truth-in-Lending Statement (TIL) has now been merged with the Loan Estimate (formerly known as the Good Faith Estimate) and also merged with the Closing Disclosure (formerly known as the HUD-1 Settlement Statement). These changes took effect as of 2015 to simplify the process and allow for a more readable disclosure that is now consistent at the beginning and ending of an approved loan process. This document provides full written disclosure of the terms and conditions of a mortgage, including the annual percentage rate (APR) and other fees. . It is exactly the same as the TIL that you received immediately after your initial application, except it has been updated to reflect the final rate and fee information. Federal law requires that all lenders provide you with this document at closing.

 

The “Note”

This is the document you sign to agree to repay your mortgage. The Note will provide you with all of the details of your loan including the interest rate and length of time to repay the loan. It also explains the penalties that you may incur if you fall behind in making your payments.

 

Mortgage / Deed of Trust

This document pledges a property to the lender as security for repayment of a debt. Essentially this means that you will give your property up to the lender in the event that you cannot make the mortgage payments. The Mortgage restates the basic information contained in the note and details the responsibilities of the borrower. In some states the document is called a Deed of Trust instead of a Mortgage.

 

Right of Rescission

Federal Law requires that you have three days to decide positively that you want a new mortgage after you sign the documents if your loan is a refinance. This means that the loan funds won't be disbursed until three business days have passed. The closing agent will provide more details at the closing.

 

Will I need to have an attorney represent me at closing?

In some areas of the country it is very customary, and sometimes required by law, to have an attorney represent you at the closing. In other areas, attorneys are not as common at a real estate closing. Please contact the closing agent if you have questions about attorney representation. By all means, we recommend that you have an attorney at the closing if it would make you more comfortable. If your attorney has any questions about your new mortgage, refer them to your Mortgage Closer. We are happy to provide any information necessary to support a healthy closing.

 

Can I get advanced copies of the documents I will be signing at closing?

The most important documents you will sign at closing are the note and mortgage, sometimes called the deed of trust. Unless there are special circumstances, these documents are usually prepared one to two days before your closing. Other documents are prepared by the closing agent the day before or the day of your closing. If you would like copies of the completed documents to be sent to you after they are prepared, please contact your Mortgage Closer.

 

Who will be at the closing?

The closing agent acts as our agent and will represent us at the closing. However, your personal Mortgage Processor/Closer will contact you prior to closing to talk about your final documents and to provide a final breakdown of your closing fees. If you have any questions that the closing agent can't answer during the closing, ask them to contact your Mortgage Processor/Closer by phone and we'll get you the answers you need - before the closing is over!

 

I won't be able to attend the closing. What other options are there?

If you won't be able to attend the loan closing, contact your Mortgage Processor/Closer to discuss other options. If someone you trust is able to attend on your behalf, you can execute a Power of Attorney so that this person can sign documents on your behalf. 

 

If I apply, where will the closing take place?

We use a nationwide network of closing agents and attorneys to conduct our loan closings. We will try to schedule your closing to take place in the closest location near your home for your convenience.

We will deliver our loan documents and wire transfer your loan funds to the closing agent, attorney or your closing may very well be conducted by our team depending upon the type of product we are financing to ensure that in either scenario, those representatives will have plenty of time to prepare for your closing.

 

Can I make my monthly payments with an automated debit from my checking or savings account?

Automated monthly payments are available. Prior to your loan closing, please notify your Mortgage Processor/Closer that you would like your monthly payment set up to automatically draft from your checking or savings account and the required form will be provided to you at closing for your signature.


Have a question? Email us: mortgageloanoriginators@mofcu.org , give us a call at 409.924.5213, Toll Free at 800.892.1111 or  stop by a location close to you for any questions you may have. We’re here to help Monday - Friday 8am-5pm CST.