For most of us, a home is the biggest purchase we will ever make. It's also probably the most important. Not only is this purchase important to us, it's important to the banks and financial institutions that will give us the loan. And if there is a single way to measure importance, it's in the size of the loan package. Depending on several variables, you're looking at between 100-200 pages with most hovering right around the 140-150 page area. With that many pages you'll be signing your name somewhere around 50 times, so you better have your hand in tip-top signing-shape.
So what's in a loan signing package?
Most of the documents in a loan signing package are the same for every package and contain the same language for every loan. Examples of these documents include: Errors and Omissions, Compliance Agreement, Certification and Authorization, Hazard Insurance Disclosure, Occupancy Affidavit, etc. There will also be two tax forms for each signer, the W-9 and the T-4506. You will also be signing the Residential Loan Application. Now, all of these documents are important, but some are more important than others and are directly tailored to your loan. Let's take a look at those one by one.
The Closing Disclosure (or CD in real estate terms)
This document has all the dollar figures associated with your loan: the amount of the loan, the interest rate, your monthly payment amount, your closing costs and many more. One of the important figures to look at on this document is the "Costs At Closing" section, the last figure on the first page. There, under, "Cash To Close" will be a dollar amount followed by two boxes. One of those boxes will be checked. If you owe money at closing the "From Borrower" box will be checked. If you are getting money back, the "To Borrower" box will be checked.
The Note
This is a document that has all the terms of your loan, also. Check this document fully to make sure this matches what you agreed upon with the bank.