Congratulations, Future Homeowner! You’re almost there! After months of searching, negotiating, and preparing, the finish line is in sight: the real estate purchase closing. This is the moment when ownership of your dream home officially transfers to you. To ensure you’re well-prepared and confident, let’s dive into the essential documents you’ll encounter during this crucial phase.

1. The Settlement Statement (HUD-1 or Closing Disclosure): Before signing anything, you’ll receive a settlement statement that outlines all the financial details of the transaction. This document will list the closing costs, fees, and any credits associated with the purchase. It’s crucial to review this statement carefully to ensure accuracy. You should compare it to your Loan Estimate to spot any discrepancies and ask your real estate agent or attorney to explain any items you don’t understand.

2. The Deed: The deed is the most critical document at the closing table. It transfers ownership of the property from the seller to you. There are different types of deeds, such as a Warranty Deed or a Quitclaim Deed. A Warranty Deed guarantees that the seller has a clear legal title and the right to sell the property, while a Quitclaim Deed transfers whatever interest the seller has in the property without making any guarantees about the title’s validity. Your attorney or closing agent will guide you through this process.

3. The Mortgage Note: If you’re financing your home with a mortgage, you’ll sign a promissory note outlining the terms of your loan. This note states your promise to repay the loan amount, including the interest and other fees, according to the agreed-upon schedule.

4. The Mortgage or Deed of Trust: This document secures the property as collateral for the loan. If you fail to make mortgage payments, the lender can foreclose on the property. The difference between a mortgage and a deed of trust lies in the involvement of a third party, known as a trustee, who holds the legal title to the property until the loan is paid off.

5. Title Affidavit or Statement of Identity: This document confirms your identity and affirms that you are not involved in any legal issues that could impact your ownership rights. It’s a way to protect both you and the lender from potential title disputes.

6. Truth in Lending Disclosure: If you’re obtaining a mortgage, you’ll receive this document, which outlines the terms of the loan, including the annual percentage rate (APR), total loan amount, finance charges, and payment schedule. Review this carefully to make sure it aligns with what you’ve agreed upon.

7. Homeowners Insurance Documents: If you’re financing your home, your lender will require proof of homeowners insurance. You’ll provide documentation confirming that your property is adequately insured against damage and liability.

8. Various Affidavits and Disclosures: Depending on your state’s requirements and the specifics of the transaction, you might need to sign several affidavits and disclosures. These could include documents related to lead-based paint, property boundary lines, and more.

9. Closing Statement: This summarizes the financial transactions that occurred during the closing, showing the debits and credits to both the buyer and the seller. It’s a useful tool for understanding the final numbers and ensuring everything is accurate.

10. Certificate of Occupancy: This document, issued by the local government, certifies that the property complies with all building codes and is suitable for habitation. It’s essential for ensuring your safety and the property’s legitimacy.

Remember, the closing process can be overwhelming, but you’re not alone. Your real estate agent, attorney, and potentially a closing agent will be there to guide you through each step. Take your time to read and understand every document before signing, and don’t hesitate to ask questions. Once you’ve completed the paperwork, you’ll finally hold the keys to your new home in your hands – a moment worth all the effort and anticipation. Welcome to homeownership!