Closing Documents

Deed restrictions are nothing to be alarmed about. They are a common legal instrument used to uphold community standards and preserve the value of the neighborhood for the sake of all property owners. But, you also don’t want to be surprised either. You don’t want to buy a house; thinking to add a third bedroom or build an outbuilding to house your 45 foot RV only to find out you can’t due to deed restrictions. You’ll save a lot of time, money and headaches finding out what you can and can’t do  ahead of time.

The closing disclosure is a document that lenders are required, by law, to provide to borrowers outlining the terms, conditions, and expenses of the mortgage loan. Throughout the loan process you will receive several estimates starting with the initial loan estimate, possibly a revised loan estimate, then a preliminary closing disclosure and finally the closing disclosure.

When you close on a home one of the documents you will be asked to review at the closing table is a document referred to as a “title commitment.” It is one of the most important documents in the real estate closing process. Without a title commitment a bank will not lend you money to purchase the property. They want to know the risks upfront prior to agreeing to fund the purchase. Moreover, they will want to reduce that risk even further by insuring the transaction itself through what is known as “title insurance.” Insurance companies are just like banks; they don’t want to take on any unnecessary risks. And won’t issue a title insurance policy without knowing the risk factors involved.