You probably thought you had to sign a lot of documents when you first decided to enter a contract to buy your Naples home. That’s nothing compared to the amount of paperwork that you’ll need to sign when you attend the closing, though.
You must know what to expect during the closing process to protect your interests.
One of the only documents that you’ll have to sign at closing that you’ll have a chance to review before it is your U.S. Department of Housing and Urban Development (HUD-1) Settlement Statement.
This federally-mandated document lists all fees and costs you can expect to pay at the closing. You’ll need to review it for errors. You’ll know exactly how much you need to secure in a cashier’s check or wire transfer for your downpayment and any other costs at closing.
Mortgage company documents
A second document that you’ll have to sign at the closing is a Master Promissory Note. It details important information about your mortgage, such as your interest rate, the length of your mortgage payments, the dollar amount, the address where to send them and details about what happens if you fail to pay. You’re officially on the hook for making mortgage payments once you sign such a document.
An additional document that your mortgage company may have you sign is an escrow disclosure statement outlining what portion of your monthly mortgage payment covers insurance and taxes.
Transfer of deeds and tax obligations
You can expect to sign at least two different deeds at the closing if you financed your home. One of those will transfer ownership of the property from the former owner to you. The deed of trust you’ll have to sign at the closing gives your lender a right to initiate foreclosure proceedings if you default on your payments.
It’s also likely that your attorney will also have you sign a property tax transfer declaration.
What to expect at your closing
While there are many standard forms that you may find yourself needing to sign at your closing, the inclusion of others may vary depending on whether you secured financing for your Naples property. A real estate transactions attorney can help you understand Florida legal documents and ensure that they protect your interests.