First-time homebuyers entering the market often have a number of questions, especially around the steps and documents involved in the process of obtaining a loan and securing their new home. There are several important facets to the process, and one that’s especially notable near the end of a home purchase situation is known as the closing disclosure.
At Altius Mortgage and our partners with Mortgage Ogden, we’re happy to provide a wide range of mortgage loans and related services throughout Park City and other parts of Utah, including for first-time homebuyers looking for assistance as they enter the market. We’ll assist you with a wide range of documents or related needs that may come up during your homebuying process, including the closing disclosure when it comes time. What is this document, why does it matter, and when will it become part of the picture? This two-part blog will go over everything you need to know.
Closing Disclosure Basics
For those who have not heard of them, a closing disclosure is an important document that comes at the end of a home purchase process, also known as a closing. There are often several different forms that come into play during various parts of the loan process, and one additional form your loan servicer will provide near the end is what’s known as a closing disclosure, which is meant to detail all costs associated with your mortgage.
The closing disclosure will generally be five pages in length, covering a number of different topics and different parts of your loan, including your interest rate, your down payment amount and the terms of your loan. It will also include all costs that you’ll be responsible for or fees that you’ll pay at closing, which can include a wide range of expenses from origination fees to property taxes to various other costs.
When Closing Disclosures Come
The law states that lenders are required to provide borrowers with a closing disclosure at least three days before closing. If you’re receiving a loan to purchase a home, this document is known as the HUD-1, and it’s important for all parties involved to know what it contains and how it will impact their lives after closing on such an important residential transaction.
It’s also important that borrowers go through their closing disclosure in detail, checking it for errors or other possible concerns. If any such mistakes are found, notify your lender immediately to fix the problem and remedy the situation before the closing date itself arrives.
For more on closing disclosures within a mortgage and homebuying situation, or to learn about any of our home loan services or fantastic mortgage rates in Park City, speak to the staff at Altius Mortgage today.