You’re probably a bundle of nerves a few days before your closing, and that’s OK. Luckily, you have a trusted loan officer, among others, to help calm your worries. We find that one of the things that helps is to thoroughly explain the documents needed when closing on a house in Colorado long before the closing day. In fact, you must be given some of these documents three days before the closing so that you have time to review them. You also should come to the closing prepared with general documents, information and resources that might be needed.
Documents Needed When Closing on a House in Colorado
Following are the most important documents needed when closing on a house in Colorado, as well as in other states throughout the country, as noted by Consumer Finance and NOLO.
A Closing Disclosure is a five-page form that provides details about the loan. It includes the loan terms, your projected monthly payments, and how much you will pay in closing costs.
The Promissory Note is the legal document you sign to agree to repay your mortgage. It will include the amount you owe, the interest rate, the length of the loan, and the place where the payments are to be sent. It also would explain what happens if you fail to make your payments.
Mortgage/Security Instrument/Deed of Trust
Generally, this document is where you give the lender the right to take your property by foreclosure if you fail to pay your mortgage.
This document transfers the property from the seller to the buyer.
Bill of Sale
A Bill of Sale transfers all of the property that is being sold along with the house, such as appliances, furnaces, and light fixtures.
The affidavit is a notarized statement by the seller confirming ownership of the property and describing any known title defects.
Right to Cancel
If you are refinancing your loan, you have the right to cancel within three business days. This rule does not apply to new home loans.
Additional Items you Should Have with You
Some of the additional information and documents needed when closing on a house in Colorado include the basics, such as a driver’s license, Social Security number and a checkbook in case any additional issues arise.
In addition to your Realtor and loan officer, individuals who should come to the closing include your lawyer or other representative, both for legal reasons and to make sure you’re getting what was agreed upon.
Contact Us for a Full List of Documents Needed when Closing on a House in Colorado
While these are some of the big items needed on closing day, additional documents and information could be needed. We’ll go through all of that with you long before that day comes, but if you want to know what you need in your particular case even sooner than that, we’ll be happy to fill you in. We can be reached through our Wilcock Team of NOVA Home Loans website, by phone at 720-593-6682 or by email at email@example.com.