Buying a home here in the Memphis area is an exciting experience, but it takes time and a lot of work. Finally, after going through all of the preliminary due diligence such as obtaining a home inspection, getting an appraisal and finalizing financing, the time for the real estate closing has come. Just like the other parts of the buying process, this final step to homeownership will involve multiple documents.
The closing disclosure and loan estimate outline the details of the mortgage loan. The buyer should receive the first documents around three days prior to the closing. It is vital to compare these two documents to make sure the details match. If they do not, now is the time to make corrections. A related document is the mortgage note, which should contain the same details.
The buyer will also receive a deed of trust or mortgage. This is the document gives the lender the right to file a claim against the home if the owner fails to make the agreed upon mortgage payments since it secures the loan and makes the home its collateral. The numbers on the initial escrow statement lets the buyer know what the lender will take out of the escrow account in the first year of ownership to make payments such as insurance and taxes.
Understanding these documents may seem like an easy task, but it does not always work out that way. Even if a new Memphis homeowner does understand them, dealing with any discrepancies or errors could prove problematic. In order to make sure that the remainder of the process goes smoothly, it would be a good idea to work with an attorney who routinely assists homeowners with the real estate closing process.
