If you are a first time home buyer approaching your new home’s closing, it is probably advisable for you to have an idea of what will take place at the closing so you can be prepared. You should know where it will take place, the persons to be present and what documents will be reviewed and signed. The closing is an exciting event because you will leave an official home owner.

You should know that the loan closing usually takes place at the office of the title company or a local attorney. The attorney will act as your agent if you do not close with a title company. In some states the seller may be present at the closing in order to transfer the home over to you, but in some states this is done separately from the closing of the home.

As you may be aware, you will be reading and signing several legal forms during the closing. You need to read all of these carefully even though they may be lengthy and time consuming. After all, this is one of the most important transactions in your lifetime and you want to make sure everything is complete and official with no legal complications.

If you have questions about what you read, the closing agent or attorney should be able to answer your questions. You may also contact your loan advisor if you are more comfortable with that. Your loan advisor should have contacted you a few days prior to the closing and reviewed all of the information with you, including final fees, the loan amount and first payment date.

The most important documents you will be signing at closing are the HUD-1 Settlement Statement, Truth-in-Lending (TIL) Statement, the Note and the Mortgage or Deed of Trust.

The HUD-1 lists all of the fees collected in order to close and is also known as the closing statement. The TIL states all of the terms and conditions of a mortgage including APR and other fees.

The Note is what you sign in agreement to pay back your mortgage. It tells you the details of your loan, length of the loan, time to repay it and other penalties that will ensue should you fail to repay it. The Mortgage or Deed of Trust (what it is called depends upon on the state in which you reside) basically gives the lender your property as security in case you fail to pay off your loan.