Checklist of Documents to be obtained prior to closing by the Borrower

Please make sure that you have made arrangements to obtain this information prior to closing and provide a copy to the title company in advance of the closing.

∠ Title Insurance Commitment The Company issuing the title insurance policy will have researched legal records to make sure that you are receiving clear title, or ownership, to the property. Their title search has established that the seller of the property is the legal owner, and that there are no claims, or liens, against the property. The title company offers both a lender's policy and an owner's policy. You will have to pay for a lender's policy and it is advisable for you to have an owner's policy as well. For a small additional premium, it will protect you up to the full value of the property if fraud, a lien or faulty title is discovered after closing. You should read the Title Commitment carefully, as there will likely be a number of requirements (Schedule B-1) that you must comply with prior to or at closing.

∠ Mortgage Loan Commitment The Company lending money for the purchase (refinance) of a property will likely issue a mortgage commitment outlining all of the requirements and conditions for closing the loan transaction. You should read the Mortgage Commitment carefully, as there will likely be a number of requirements that you must comply with prior to or at closing.

∠ Homeowner's Insurance Policy and receipt of payment The lender will likely require you to have homeowners insurance on the property at least in the amount of the replacement cost of the property. You should make sure the policy covers the value of the property and contents in the event they are destroyed by fire or storm. You must pay for the policy and have it at closing. You are free to select the insurance carrier, but the lender will require the company to meet rating standards and be rated by a recognized insurance rating agency.

∠ Flood Search & Flood Insurance A lender may require a flood zone determination to be made to ascertain whether the property is located within a defined flood plain. If the property is found to be in a flood plain, the lender will likely require you to purchase and maintain a flood insurance policy. You should make sure the policy covers the value of the property and contents in the event they are destroyed by flood. You must pay for the policy and have it at closing. You are free to select the insurance carrier, but the lender will usually require the company to meet rating standards and be rated by a recognized insurance rating agency.

∠ Termite Inspection and Certification In many areas of the country, the property must be inspected for termites and the inspection is required in the purchase contract. In some parts of the country, this may be called a "wood infestation" report. The report is required on all FHA and VA loans as well as many conventional loans.

∠ Survey or Plot Plan Your lender may require a survey of the property, showing the property boundaries, the location of the improvements, any easements for utilities or street right-of-way and any encroachments on the boundaries by fences or buildings. Encroachments can be minor, such as a fence, or may be serious and have to be corrected before closing. In some areas, an addendum to the title policy eliminates the need for a survey.

∠ Certificate of Occupancy or Building Code Compliance Letter Many local governments require an inspection when a home is sold to see if the property conforms to local building codes. Code violations may require repairs or replacement of structural or mechanical elements. The responsibility for ordering the inspection and paying for any required repairs should be spelled out in the purchase contract. If your home is new construction, a Certificate of Occupancy will need to be obtained from the city or county, before you can close the loan and move in. The builder will obtain the certificate from the appropriate authority.

∠ Deed Preparation This is the legal document that creates the transfer of title from the seller to the buyer. It is the document that conveys the rights held by the seller. The deed should be reviewed thoroughly to be sure that all rights and warranties expected by the buyer are fully conveyed. This document is usually prepared by an attorney. Title companies can usually arrange to have the deed prepared by a staff attorney. The deed will be recorded in the county where the property is located, and becomes a public record.

Other Documentation Your mortgage loan commitment letter and your title insurance commitment will disclose all of the additional documentation that you must provide prior to or at closing. You should read both the loan commitment and the title insurance commitment in its entirety to be sure you have complied with all of the requirements necessary to complete the closing.