You found a broker, chose to get a fixed rate mortgage, and locked in a killer interest rate, what happens now? Your broker is going to set you up with a Title company who is going to close your loan.
What is a Title Company
A Title company is responsible for clearing your title and closing the loan. They will perform title searches in an attempt verify a “clean title”. They will also provide the title insurance policy to the lender, conduct all appropriate title work, and schedule your closing. Much of the paperwork prepared by your broker will have been updated during underwriting, and finalized by the title company.
The Closing Documents
When people say that you are signing your life away at closing, it really does feel like you are signing your life away. The documents from my refinance stand a good half inch thick. Lets look at what each of these documents are and what they are for.
Notice of Right to Cancel: This is notice telling you that within 3 days of entering into the agreement you have the right to cancel it. This gives you three days from signing to change your mind and back out. You will receive one for each signor on the loan. My friend who has been brokering mortgages for quite a long time now has never had anyone back out.
Truth In Lending Disclosure: This document lists the pertinent information from your loan in a single page document:
- APR as a yearly rate, (will not match your quoted APR)**
- total amount of finance charges to be paid,
- amount of the loan,
- total of the payments,
- payment amount,
- first payment due date,
- prepayment penalty information, and
- late charge information.
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