Legal Solutions

What documents need to be signed at closing for a new house?

On Behalf of | Apr 25, 2022 | Real Estate Law

When people in Texas start a search for a new house, they have many different things that they both want and need in the new house. They may want a certain number of bedrooms, a certain size house, a certain sized yard, a house in a certain school district, a good neighborhood and other aspects. Once they finally choose the house that they want, they will need to make an offer.

There may be negotiations on the final sale price, but if the offer is eventually agreed to people will start the process of finalizing the house purchase. The two sides will sign a contract for the sale of the home, which is generally contingent on a home inspection. After the inspection there may be another round of negotiations based on the results of the inspections. However, even after the final negotiations are completed, the buyers cannot finalize the purchase until the closing.

At the closing the buyers will need to sign a number of different documents. These include:

  • The loan documents which state the amount of the mortgage, the interest rates, the closing costs and other aspects of the loan.
  • The closing disclosure which should be sent to the buyer prior to the closing. This document states what will be on the loan documents.
  • The escrow statement which states the amount that will be paid towards homeowners’ insurance and property taxes each month.
  • Mortgage note – this document is the promise to repay the mortgage.
  • Deed of trust which secures the mortgage note and gives the bank a right to take the house if the mortgage payments are not made.

There are many long and complicated documents that need to be signed at house closings in Texas. These are important documents that have great legal significance. It can be easy to skim though them and treat them as just standard documents that need to be signed in order to buy the house that they want. These documents should be read carefully though and having experienced attorneys review them could be very beneficial.