Services For Buyers Of Real Estate

• Reliable and timely coordination of all documents and information required for the closing of your new home
• Securely access, view, and print pertinent closing information for the property.
• Use of technology resulting in hours saved that allow more time for issues to be resolved prior to the closing

What To Expect At Closing

The most common type of real estate transaction involves a mortgage loan and can require execution of fifty (50) or more documents, most of which concern the Buyer(s). Many of these will be prepared by the closing attorney's office, but the majority will be prepared by the Lender. The documents furnished by the Lender will include Federal and State forms as well as a range of others from various affidavits to taxes. Among the most important documents you can expect to see are the following:

• HUD-1 Settlement Statement
  Developed by the U.S. Department of Housing and Urban Development, this document itemizes the services provided and fees and charges associated with closing the mortgage loan.
• GRMA Disclosure
  Required by the State of Georgia as a disclosure to the Borrower(s) that failure to comply with terms and conditions of the loan could result in foreclosure against the subject property.
• Representation Disclosure
  Informs the Borrower(s) that the Closing Attorney's Office represents the Lender/Investor and not the Buyer(s) or the Seller(s) of the property.
• Truth-In-Lending Disclosure
  Discloses the "annual percentage rate" (APR) reflecting the cost of the mortgage loan as a yearly rate. This rate will usually be higher than the rate stated on the Note because the APR includes (in addition to interest) loan discount points, fees, and other credit costs. Additional information is also provided, including finance charges, schedule of payments, late payment charges, and whether or not there is a prepayment penalty.
• Promissory Note
  The instrument the Borrower(s) signs which contains an unconditional promise to pay, on demand or at a fixed or determined future time, a particular sum of money to the Lender, a specified person, or the bearer of the Promissory Note. This document will outline the basic terms of the loan including names of Borrower(s) and Lender, Interest Rate, Loan Amount, and period of repayment.
• Security Deed (With Appropriate Riders)
  The instrument through which the Borrower(s) conveys the subject property to the Lender as collateral (or security) for the mortgage loan. This document will outline the terms and conditions of the mortgage loan.
• Riders
  In certain circumstances, Riders are attached to the Security Deed. For example: A Planned Unit Development Rider where the subject property is located in an area with covenants providing for mandatory assessments (e.g. Homeowner Association fees) or an Adjustable Rate Rider for Adjustable Rate mortgage loans.
• Waiver of Borrower's Right
  Acknowledges the Borrower's understanding that failure to meet the terms and conditions of the mortgage loan could result in foreclosure upon the collateral property and that this procedure is non-judicial in the state of Georgia.
• Survey/Termite Waivers and/or Hold Harmless Forms
  These are included based on the requirements of the given transaction. In some instances, mostly Refinances and Second Mortgages, Surveys and Termite Inspections are not required and thereby "waived." In cases where Surveys and Termite Inspections are required, the closing package will include a "hold harmless" agreement which serves as notice to the Borrower(s) that such services were provided by an independent contractor.
• Escrow Account Statement
  Federally required disclosure on every residential mortgage loan with escrow accounts for payment of future taxes and insurance, reflects anticipated receipt and disbursement of escrow funds over the next (12) twelve months.
• IRS Form W-9
  Used by the Lender as verification of Borrower's Social Security Number and for reporting interest deduction by the Lender to the IRS.
• IRS Forms 4506/8821
  Authorizes the Lender to request a copy of Borrower's income tax return directly from the IRS.
• Occupancy/Employment Affidavits
  Certify that the Borrower(s) intends to occupy the subject property as a principal residence and that employment status has not changed since the loan application.
• Flood Insurance
  The Flood Protection Act of 1973 (Public Law 93-234) requires the purchase of flood insurance in certain flood prone areas as designated by the Department of Housing and Urban Development. Accordingly, Borrower(s) must purchase such insurance if the property is located in an area where flood insurance is required.
• Corrections/Errors and Omissions/Compliance Agreement
  Borrower's Agreement to cooperate with Lender and Settlement Agent in correcting typographical or clerical errors in any mortgage documents.
• Borrower's Certification and Authorization
  Borrower's certification that all information provided to the Lender in association with the mortgage loan was true and correct and authorizing Lender to re-verify credit information.
• First Payment/Coupon Letter
  Most Lenders provide a temporary coupon for the Borrower(s) to make their initial mortgage payment in case the coupon payment booklet or invoice for monthly payment is not received in time for such payment.
• Notice of Right of Rescission
  Used in case of Refinance and Second Mortgages, not when property is subject of a sale. Gives the Borrower(s) the right under Federal Law to cancel the transaction, without cost, within three business days.
• Warranty Deed
  Instrument conveying title to real property from the Seller(s) to the Buyer(s).
• Owner's Affidavit
  Affidavit of Seller(s) certifying that the property is conveyed "free and clear" of any liens, claims or judgments.

While this can seem like an overwhelming number of documents to digest at one time, you can relax knowing that Donaghue & Chandler, LLC has a well earned reputation for trouble-free closings. Our office coordinates the entire procedure and ascertains that all documents are available and ready for signatures and final processing. At the closing, each document will be explained and a copy provided for your file to carry with you to your new home. All such documents should be kept in a safe place for any future reference.

Be Ready To Close On Your New Home

• All individuals whose names appear on the loan must sign the loan documents
• Copies of photo Identification and/or Social Security Card are required for each individual
• A copy of the Purchase and Sale Agreement plus Addenda must be made available
• Have ready any documents necessary to satisfy underwriting requirements (e.g. gift letter)
• Home Owner/Hazard Insurance Policy: Mortgagee's copy of Declaration and Paid Receipt
• Certified Funds

If you have any questions that we can help you with regarding the purchase of your new home and/or the closing for your property, please Contact Us.

The information you obtain at this site is not, nor is it intended to be, legal advice.
You should consult an attorney for individual advice regarding your own situation.