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So your purchase offer has been accepted by the seller congratulations you're well on your way to owning your new home before your transaction closes you'll receive the closing disclosure a document your lender is required to provide to you at least three business days before you sign your mortgage agreement as of October 3rd 2015 this document replaces the hud-1 settlement statement and final truth and lending statement you may have received in Prior real estate transactions so what is the closing disclosure let's take a closer look the closing disclosure is a 5-page document that offers general as well as detailed information about your loan and real estate transaction the closing disclosure will provide you with the general terms of your mortgage your projected loan payments itemization of your closing costs the total amount of cash needed to close the transaction or the total amount of cash you can expect to receive at close your closing disclosure we'll also detail which closing costs have been paid or when they should be paid and by whom these costs should align with the estimates you receive from your lenders loan estimate certain fees may increase while others may not increase above certain tolerances the closing disclosure will provide you with a calculation table that allows you to compare your closing disclosure figures with those of your loan estimate along with your mortgage terms and transaction details the closing disclosure also provides you with important loan disclosures these disclosures will give you more details on the terms of your loan including whether your loan can be assumed by someone else whether your lender can demand repayment in full at any time whether the principal amount of your loan may increase at any time your lenders policy on late and partial payments' information on any property that secures the loan instructions for fees paid from an escrow account the closing disclosure will also inform you of certain rights you hold within the transaction these include your right to receive a copy of your required property appraisal your right to refuse the loan and disclaimers regarding refinancing and tax deductions the contact information section is located on the last page of the closing disclosure this table provides you with contact information for the professionals assisting you in your transaction this information is important to retain in the event that you need to contact any of these professionals on the last page of the closing disclosure you may need to confirm your receipt with your signature depending on lender requirements keep in mind that if major changes are made to your mortgage like an increase in APR above a certain threshold an addition of a prepayment penalty or a change in the loan product your lender will be required to furnish you with a new closing disclosure, and you will be given a required additional three business days to review the information before the transaction closes buying a home...
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