Home Buyer's Guide - closer look at...

Understanding the Closing Documents
Bring a good sturdy pen to the closing - you'll have a lot of signing to do.

There are a number of documents that have to be reviewed and signed at the closing. Each serves a different purpose, but all - or most - are required to complete the purchase.

  • The Note
    This is your contract with the lender whereby you agree to repay the loan with interest as specified.
  • The Mortgage
    The mortgage provides the lender with a claim against the home you are purchasing as security for the note.
  • Truth in Lending Form
    This is a form that confirms that your lender has disclosed all loan costs to you in accordance with legal requirements.
  • RESPA
    This stands for, "Real Estate Settlement Procedures Act." It is essentially a declaration that you understand the closing procedure.
  • Closing Statement (HUD-1)
    This is an accounting of all amounts that are due to and from the buyer and seller in the transaction. The HUD-1 lists all of the uses of the sale proceeds, including the payoff of the seller's mortgage, apportionments for property taxes, real estate commissions, etc. The statement is used to determine a final amount of cash that is due to or from the buyer and seller.



Tanya Fulton
Realtor® e-Pro, GRI
443-642-0092

Long & Foster Real Estate, Inc.
1312 BELLONA AVE
LUTHERVILLE, MD  21093
Office: (410) 825-6400 ext: 6226
Email: tanya.fulton@longandfoster.com