For a society that’s supposed to be moving toward paperless, we seem to be using more than ever. When it comes to your closing and that seemingly endless stack of paper, there are really only 2 documents you need to pay attention to:

  1. The note – that’s what spells out the terms of your mortgage. Check the note for the interest rate, the principal and interest payment and the statement that confirms you have no pre-payment penalty.
  2. The closing statement – most people look at the bottom line and if it’s what you’re expecting or less, you don’t look at the rest. You need to check the rest because if you are setting up an escrow account, the closing statement is where you’ll find the monthly allocations for taxes and insurance. Make sure those numbers look right. Also, if you’re buying, check the front page to make sure you’re getting a credit for the seller’s portion of the property taxes. Once the note and closing statement are checked, the rest is fluff and boiler plate and ready to sign with gusto.
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