Buyers guide to a NJ Real Estate Closing

Buyers

At the time of closing, you will close on the purchase of the real estate and on the mortgage loan to buy the real estate. Some documents are common to many closings and other documents are unique to a particular closing. In either case, it is best to, read before you sign.

Here are some of the most common documents:

Truth in Lending Statement – this document discloses the interest rate, annual percentage rate, amount financed and the total cost of the loan over its life.
Itemization of amount financed – summarizes the finance costs, i.e. points
Monthly payment letter – you monthly payment into principal, interest, taxes, insurance and other monthly escrows
Note – document for borrowing the money and your personal guarantee to pay it back
Mortgage – puts a lien on the house as security for the loan
HUD Form 1/Disclosure/Settlement Statement – settlement costs and amounts
Warranty Deed – transfers the title of property
Pro-ration agreements - document which determines how the seller and buyer divide the costs of property taxes, homeowners association fees etc for the month the sale takes place in
Tax and Utility Receipts – various city and state receipts acknowledging what is being paid by the seller and by the buyer
Name affidavit – certifying you are who you say you are
Acknowledgement of Reports - buyer acknowledges they have seen all the reports on the property
Search or Abstract of Title – listing of every recording of the property
Closing Costs – your attorney will inform you of the total costs you will be responsible for at closing and will require the funds in a certified check.