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A. Valid identification (any one of the following current
ID’s):
- State ID Card
- Passport
- Driver’s License
B. Funds required from you at closing (if applicable) –
this must be in the form a cashier’s check or money order.
C. Any other information that has been requested in order to
close your loan.
1. What happens once I've applied for
my loan?
It usually takes a lender one to six weeks to complete the
evaluation of your application. It is not unusual for the
lender to ask for more information after your application
has been submitted. The sooner you can provide the information,
the faster your application will be processed. Once all information
is verified, your lender will let you know the outcome of
your application. If the loan is approved, a closing date
is set and the lender will review the closing with you. After
closing, you'll be able to move into your new home.
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2. What should I look for during the
final walk-through?
This will likely be the first opportunity to examine the house
without furniture, giving you a clear view of everything.
Check the walls and ceilings carefully, and any work the seller
agreed to do in response to the inspection. Any problems discovered
previously that you find uncorrected should be brought up
prior to closing. It is the seller's responsibility to fix
them.
3. What are closing costs?
There may be closing cost customary or unique to a certain
locality, but closing cost usually include the following:
- Attorney's or escrow fees (Yours and your lender's if
applicable) N/A in Colorado.
- Property taxes (prorated for the year between you and
the seller).
- Prepaid Interest (paid from date of closing to last day
of the month you closed within).
- Loan Origination fee.
- Recording fees.
- Survey fee (if applicable).
- First premium of mortgage Insurance (if applicable).
- Title Insurance (yours and lender's).
- Loan discount points.
- Payment to escrow account for future real estate taxes
and homeowner’s insurance.
- First year premium for homeowner's insurance policy (and
flood insurance if applicable).
- Any documentation preparation fees.
- Lender fees (underwriting, administration, tax service,
etc.).
- Tax Certificate fee.
- Appraisal fee (if applicable).
- Credit report fee.
4. What can I expect to happen on
closing day?
The closing agent will then list the money you owe the seller
(remainder of down payment, prepaid taxes, etc.) and the money
the seller owes you (unpaid taxes and prepaid rent, if applicable).
The seller will provide proof of any inspection, warranties,
etc.
Once you understand all the documentation, sign the Deed
of Trust (agreeing that if you don't make payments the lender
is entitled to sell your property and apply the sale price
against the amount you owe plus expenses). You'll also sign
a Promissory Note promising to repay the loan. The seller
will give you the title to the house in the form of a signed
deed.
You'll pay the lender's agent all closing costs and, in turn,
he or she will provide you with a settlement statement of
all the items for which you have paid. The Warranty Deed (deed
from seller) and Deed of Trust (Deed from Lender) will then
be recorded in the County Registry of Deeds, and you will
be a homeowner.
5. What do I get at closing?
Settlement Statement (HUD-1 Form) (itemizes services provided
and the fees charged; it is filled out by the closing agent
and must be given to you at or before closing)
- Truth-in-Lending Statement
- Promissory Note
- Deed of Trust
- Copies are provided to you off all of the above listed
documents along with any other miscellaneous documents you
have signed. The Originals are either sent for recording
or returned to the lender.
- Copy of your appraisal and/or survey, if applicable. If
these are not supplied to you at closing these documents
will be mailed to you shortly thereafter by your lender.
- Keys to your new home
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