Bob Northern & Company
12540 Patterson Ave
Richmond, VA 23238
Tel: 804-708-9463 • Fax: 804-708-9467
The Closing Process
What paperwork will I sign at the closing?

What's included in the moutain of paperwork at closing.

What paperwork will I sign at the closing? Will I receive copies
of everything I sign?
The "H.U.D. 1 Settlement Statement" shows the receipt and disbursement of all monies in the real estate transaction. The receipt and disbursement of all monies in the transaction are labeled under separate columns of "Borrowers Transaction" and "Sellers Transaction".

The "First Payment Letter" directs the purchaser to whom and where to send the initial payment in the event the lender has not sent you the payment coupons prior to the due date of the first payment.

"The Deed" conveys title to the property. It's like the "Car Title" for the car. You should note the type of conveyance you are receiving. Husbands and wives normally take title to real estate by "Tenants By The Entirety With The Right Of Survivorship." This conveyance assures both spouses that if either dies, it automatically becomes the property of the surviving spouse.

It is interesting to note that individual purchasers can obtain title to real estate that excludes ownership of all present and future spouses.

The "Deed of Trust" is the loan agreement used in Virginia. This legal document is normally several pages in length. It explains the terms and length of the loan. It goes into detail about when the payments are due and what happens in the event of a delinquency or default. Believe it or not Virginia does not have mortgages.

The "Boundary Line Survey" shows the location of any house, outbuilding(s), driveway, property lines, set backs, encroachments, easements, etc.

The "Lender's Loan Commitment Letter" and "Lender's Rate Lock-In Letter" are signed by the purchaser(s) accepting the lender's loan offer.

The "Purchasers' Loan Application" is signed. This is a duplicate of your original loan application, but this has been typed and modified as needed.

"Internal Revenue Service Form W-9" enables the lender to report the annual interest collected to the I.R.S.

"I.R.S. Form 4506" enables lenders to randomly confirm the accuracy of the borrower's tax returns that were provided at time of loan application. Many attorneys advise their clients to limit this permission for a period of time not to exceed six months from closing.

The "Same Name Affidavit" shows the names you have used in the past for credit, etc.

The "Loan Servicing Letter" is the lender's disclosure to you of the percentage of loans they originate and keep as compared to the percentage of loans they originate and sell to other companies.

The "Truth in Lending Disclosure" documents the principal and interest payment, interest rate, A.P.R and total amount of interest paid over the life of the loan.