Closing Documents – Knowing What You Will Be Signing

If you are in the process of buying a house at the lake of the Ozarks, the day of your real estate closing will be an exciting one! You have anticipated it for weeks, and it is here at long last. You will finally get to take possession of your new home. But you’re also going to be signing some very important documents. Do you understand exactly what they are? At Arrowhead Title we are very focused on communicating clearly with our clients and educating them so they know exactly what is happening at any stage of the closing process. Today's blog is dedicated to explaining closing documents so you know exactly what you’re signing when you get to your closing day. If you aren’t sure exactly what documents are involved and what they mean, keep reading. We think you will find this blog helpful and informative.

The Loan Application

This is the application that you completed to apply for a mortgage. Your lender and title company will be working together throughout the process, and they have double-checked and triple-checked already. But it’s still a good idea for you to confirm that the dollar amounts are what you expected in and agreed upon.

The Closing Disclosure

The closing disclosure is a federally required document that outlines the exact details and terms of your loan. It will line out all fees and who is responsible for paying them, cash to close, interest rate, amortization, payment dates, and the monthly payment amount.  As with everything you’ll sign on your closing day, these documents have been checked and double-checked. But you still want to do your due diligence to look at the numbers and make sure they are accurate to your understanding before signing them, just to make sure.

The Promissory Note

The promissory note is exactly what it sounds like, it is a legally binding document that you are signing that says you promise to agree to the terms and payment of the loan. The promissory note will list the full balance of the loan, the interest rate, the due dates, the amortization term, as well as legal consequences should you default on the note.  Never be afraid to ask questions if they don't look right or make sense. 

The Mortgage

While most buyers look at the mortgage as a document that says they have access to the money to buy the house, the actual purpose of the document is to state that the real estate will serve as collateral should you default on your loan. This document shows that your mortgage lender owns the rights to your home until the loan has been paid off in full. Once your loan has been fully paid, you will receive a deed of release which releases your mortgage lenders' rights and proves you own your home free and clear.



We hope this helps you understand exactly what will be happening at your real estate closing. As a trusted title company at the Lake of the Ozarks since 1984, we always want our clients to be informed and prepared every step of the way. If you have any questions about your real estate closing at Lake of the Ozarks, feel free to reach out to us. For more tips and information about the real estate market at Lake of the Ozarks, we invite you to follow us on social media using the link below!

The Lake of the Ozarks' Most Trusted Title Company

Where Accuracy Matters!

750 Bagnell Dam Blvd Suite B
Lake Ozark, MO 65049


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