The following is a short description of the documents that the Buyer in the transaction will likely have to review and sign at closing:

Final Truth in Lending Statement (TIL)
This is also called a Disclosure Statement This form is required by Federal law. Perhaps the most confusing of all the documents, it spells out the necessary costs associated with the loan and shows the A.P.R. (Annual Percentage Rate) interest rate. This rate is an adjusted calculation of the interest rate you will have paid to include all of the costs of your loan including the incidental and one-time charges as shown on the document. You were given an initial TIL shortly after you completed the loan application. If no changes have taken place since that time, the lender need not provide one at closing. If, however there are significant charges, you must receive a corrected TIL no later than settlement. This document will state the annual percentage rate of your loan, the finance charge, the amount financed, and the total of payments you will make. It will indicate the demand feature, if your loan carries a variable rate or if it is an assumption, the filing and recording fees, the charge for any late payments, and if a prepayment penalty applies to your loan. You will be asked to sign this form to confirm your receipt of this notice.

Final Good Faith Estimate of Settlement Costs Disclosure
This document will list your final closing expenses and settlement charges which you incurred in conjunction with your loan. It will include the appraisal fee, the credit report fee, the tax related service fee, underwriting fee, the yield spread premium to any mortgage broker involved, the courier fee, flood certification, processing fee, wiring fee, prorated interest, mortgage insurance premium, hazard insurance premium, hazard insurance held in escrow, city tax escrow, settlement or closing fee, document preparation the, title insurance, lenders title insurance fee, recording fees, any city and county tax stamps or state tax stamps. You would have received an Estimated Good Faith Estimate of Settlement Costs before your loan closed, but this final statement is your receipt of money actually paid and should be kept for income tax purposes. The Title Company or closing agent have given you a copy of the final closing or HUD-1 statement, but don't be surprised if you receive an additional statement from your lender.

Settlement Disclosure Statement
Also called the HUD-1 form, HUD-1a, Closing Statement, Settlement Statement, or Settlement sheet. This form is required by Federal law and is prepared by the closing agent. It provides the details of the sale transaction including the sale price, amount of financing, loan fees and charges, proration of real estate taxes, amounts due to and from buyer and seller and funds due to third parties such as the selling real estate agent. The amount you need to complete the closing is usually on the first page (shown as "Amount Due From Borrower." This amount must be provided in certified funds or wired into the closers settlement account. It must be signed by both buyer and seller and becomes a part of the lender's permanent loan file. Some of your charges on the HUD-1 may have already been paid, such as credit report and appraisal fees. They will be noted as P.O.C. (paid outside the closing). You will usually be charged interest on the loan from the date of settlement until the first day of the next month and your first payment will be due on the first day of the month and your first will be due on the first of the following month. Make sure you know exactly when your first and subsequent payments are due and what the penalties are for being late.

Mortgage Note
The mortgage note is legal evidence of your indebtedness and your formal promise to repay the debt. It sets out the amount and terms of the loan, including the interest rate, payment amounts and length of obligation. This document also recites the penalties and steps the lender can take if you fail your payments on time.

Mortgage
Also known as a Deed of Trust in some states. This is the "security instrument" which gives the lender a claim against your house if you fail to live up to the terms of the mortgage note. It recites the legal rights and obligations of both you and the lender and gives the lender the right to take the property by foreclosure if you default on the loan. The mortgage or deed of trust will be recorded in the county public records, providing public notice of the lender's claim (lien) on the property.

Mortgage Riders and Addendums
These are extra legal documents added to the mortgage and note as needed for the type of loan you obtained, or for the type of property or ownership interest that you are encumbering. These documents are generally recorded with the mortgage.

Miscellaneous Documents
There will be a number of notices, disclosure, affidavits and other documents that you will be asked to sign at closing. Some may be required by the lender and some may be required by state or Federal law. Settlement of a mortgage loan is a legal process, so specific procedures and requirements will vary according to state and local laws. Each of these documents is important and may have legal consequences. Some provide for criminal penalties for false information, and some may give the lender the right to make you pay your entire loan amount immediately. Be sure to read each document carefully. Some documents may serve multiple purposes.

Loan Application • Also called Form 1003. This document tells the lender that the buyer's financial condition is the same as when they made the initial loan application.

Affidavits • These are sworn statements of fact, generally used to make certain that conditions on which the loan was made have not changed. There are usually one or more affidavits in most closings.

Name Affidavit • This is a legal acknowledgment of all the various spellings of the buyer's (mortgagors) name(s). This declares that all names shown refer to the same person.

Address Certification • for properties that might have a double mailing address.

Occupancy Affidavit • A statement that you intend to occupy the property as your primary residence.

Financial Status Affidavit • A statement that your financial status has not changed since the time you applied for the loan.

Title Affidavit • This is also called a Buyer's Affidavit (or Owner's Affidavit in a refinance transaction) The Title Company issuing the title insurance policy will require you to make certain affirmations regarding title, or ownership, to the property.

W-9 Form IRS Form • requesting certification of the Borrowers' Tax Identification Number(s).

IRS Form 4506 • This is an authorization for the lender to obtain a copy of your Income Tax returns.

Compliance Agreement • This is an agreement signed by the buyer and seller stating that they will cooperate in the event of clerical or typographical errors.

Borrowers Certification • This is a certification of facts signed by the buyer.

Borrowers Authorization • This is an authorization agreement signed by the buyer permitting the lender to release or obtain certain personal information related to the loan.

Initial Escrow Amount Disclosure Statement • This is a breakdown of escrow payments for future property tax bills, and/or bills for insurances required by the lender. In addition to your monthly payments on the loan, most lenders will require you to maintain an "escrow", or "impound," account for real estate taxes and insurance. Current law permits a lender to collect 1/6th (2 months) of the estimated annual real estate taxes and insurance payments at closing. After closing, you will remit 1/12 of the annual amount with each monthly payment. Tax and insurance bills should be sent to the lender who will pay them out of the escrow funds collected.

Escrow / Impound Authorization • This is an authorization agreement signed by the buyer permitting the lender to escrow payments for future property tax bills, and/or insurance bills.

Hazard Insurance Authorization and Requirements Notice • This is an acknowledgment of notification of the Hazard Insurance requirements for the loan.

Flood Certification and Determination Notice • This is an acknowledgment of notification of the determination whether the property is located within a defined flood plain, and the Flood Insurance requirements for the loan.

Private Mortgage Insurance Disclosure • If you applied for a loan which required that you obtain private mortgage insurance (PMI), you will receive this notice. Mortgage Insurance reimburses your lender for any loss that the lender might incur in the case that you failed to make your loan payments on time. Mortgage insurance is typically required for any non-government loan where the down payment made is less than 20% of the purchase price. There are two types of mortgage insurance: traditional mortgage insurance and lender paid mortgage insurance. Under traditional mortgage insurance, the lender will submit an application for the insurance, which must be approved by the mortgage insurance company before your loan can close. The cost for the insurance will be paid by you, the borrower. You may have the option of cancel the mortgage insurance when certain conditions have been satisfied, such as your equity reaching 78% of the original value of the property securing your loan. Often the mortgage insurance will terminate automatically when you reach the 78% equity point. Under the lender paid mortgage insurance option, this is available only for certain types of loan programs and you do not have the right to cancel the mortgage insurance. Lender paid mortgage insurance typically carries a higher rate of interest than borrower paid mortgage insurance. Lender paid mortgage insurance terminates only when the residential mortgage loan is refinanced, paid off, or otherwise terminated. The disclosure document you receive in connection with the mortgage insurance will contain a chart of the benefits and disadvantages of each type of insurance. You may be asked to choose which type of insurance you wish to obtain. Borrowers do not have the option to cancel lender paid PMI. In the event the lender cancels the paid PMI, any refund will be payable to the lender and your monthly payment will remain the same. If your loan is greater than 80 percent of the value of the property, you will probably have to pay for mortgage insurance that protects the lender in case you default. One year's premium will usually run between 0.5 percent to 0.75 percent of the loan amount.

Appraisal Notice • This explains that you have the right to receive a copy of the appraisal report in connection with your mortgage application. If you want to receive a copy of the report, just write the lender on the address listed in the letter. It is always wise to keep a copy of the appraisal report. Be sure to let either your lender or your real estate agent know you want a copy of the appraisal report.

Section 32 Truth in Lending Worksheet • This is a calculation statement as to whether the loan is subject to Section 32 of Regulation Z. The Home Ownership and Equity Protection Act of 1994 imposes some requirements on what you might call "high-cost mortgages". If Section 32 applies, the creditor must (1) make a disclosure, (2) not include certain provisions in the contract, and (3) abide by some restrictions on what the creditor can do.

Pennsylvania High Cost Mortgage Worksheet • This is a calculation statement as to whether the loan is a High Cost Mortgage as defined under Pennsylvania Act 55 of 2001.

Pennsylvania Choice of Insurance Notice • This is an acknowledgment of notification of your right to select the insurer of your choice in accordance with Section 277.1(c) of Title 40 of the Pennsylvania Statutes.

ECOA Notice • This is an acknowledgment of notification of your rights under the Federal Equal Credit Opportunity Act.

Fair Housing Act Notice • This is an acknowledgment of notification of your rights under the Civil Rights Act of 1998, as amended by the Fair Housing Amendments Act of 1988.

Government Monitoring Disclosure • This is a form required by the Federal Government to monitor lenders compliance with Federal regulations.

Transfer of Servicing Disclosure Statement • This notice states that your lender may have the right to transfer you loan payments to another lender. The transfer practices and requirements will be explained in this notice, and it will tell you that you have the right to be given written notice of the transfer. It will explain the damages and costs in circumstances where services violate the requirement of that section. You will also be told off the servicing transfer estimated by the lender.

First Payment Letter • This a letter that discloses the amount of the first payment and the date it is due.

Notice of Right to Cancel • For certain residential property refinance loans, there is a right to cancel the loan during a 3 day period beginning immediately after signing the note and mortgage. You will receive two copies of this Right to Cancel notice and will sign an acknowledgment that you have received these copies.

Purchasers Closing Notice • This is an acknowledgment of notification of the privacy policy of the title company your rights under the Civil Rights Act of 1998, as amended by the Fair Housing Amendments Act of 1988.