At closing, you sign and receive the documents necessary to convey the new home to you and to close the loan from the mortgage company. The standard documents include the following:
- Deed: The deed conveys the home and lot to you, subject only to permitted exceptions such as a recorded easement.
- Promissory Note: This note is from you, payable to the lender in the principal amount of the loan plus interest.
- Mortgage of Deed of Trust: This document encumbers your home as security for repayment of the promissory note.
- Title Insurance Commitment: The title insurance company will mail the actual policy several weeks following the closing. When you receive this policy, keep it in a safe place with your other important papers. What you receive at closing is apromise that the insurance company will issue the policy.
- Builder’s Limited Warranty or Insurance-Backed Limited Warranty: Unless you move into your home early under a rental agreement with your builder, the limited warranty begins as of the date of closing.
- Homeowner Association Documents: If your new home is in a covenantprotected community, you will also see homeowners association covenants, conditions, and restrictions, the association bylaws, and articles of incorporation at closing. In addition to these standard items, the lender title company or the builder may ask you to sign other documents.