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Essa Bank & Trust

What happens at the loan closing?
Will I need to have an attorney represent me at closing?
Can I make my monthly payments with an automated debit from my checking account?
When will I know the exact amount of money that I'll need at closing?
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Generally, the closing will take place at the office of a title company or attorney in your area who will act as our agent. If you are closing on a "Rapid Refi", the closing will take place at an ESSA office.  If you are purchasing a new home, the seller may also be at the closing to transfer ownership to you.

During the closing you will be reviewing and signing several loan papers. The closing agent or attorney conducting the closing should be able to answer any questions you have or you can feel free to contact your Mortgage Professional if you prefer.

Just to make sure there are no surprises at closing, your settlement agent will contact you a few days before closing to review your final fees, loan amount, first payment date, etc.

The most important documents you will be signing at the closing include:

HUD-1 Settlement Statement

 

This document provides an itemized listing of the final fees charged in connection with your loan. If your loan is a purchase, the settlement statement will also include a listing of any fees related to the transaction between you and the seller. If this loan will be a refinance, the settlement statement will show the pay off amounts of any mortgages that will be paid in full with your new loan. Most items on the statement are numbered according to a standardized system used by all lenders. These numbers will correspond to the numbers listed on the Good Faith Estimate that will be provided in your application package. This document is also commonly known as the closing statement and both the buyer and seller must sign this document.


Note

 

This is the document you sign to agree to repay your mortgage. The note will provide you with all of the details of your loan including the interest rate and length of time to repay the loan. It also explains the penalties that you may incur if you fall behind in making your payments.

Mortgage / Deed of Trust

 

This document pledges a property to the lender as security for repayment of a debt. Essentially this means that you will give your property up to the lender in the event that you cannot make the mortgage payments. The Mortgage restates the basic information contained in the note, as well as details the responsibilities of the borrower. In some states, the document is called a Deed of Trust instead of a Mortgage.

If your loan is a refinance, Federal Law requires that you have three days to decide positively that you want a new mortgage after you sign the documents. This means that the loan funds won't be disbursed until three business days have passed. The closing agent will provide more details at the closing.

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You are not required to have an attorney represent you at closing. Please contact the closing agent if you have questions about attorney representation. By all means, we recommend that you have an attorney at the closing if it would make you more comfortable. If your attorney has any questions about your new mortgage, please refer them to your Mortgage Professional. We'd be happy to provide any information necessary.

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Yes, you can arrange for Automated monthly payments  from an ESSA Bank & Trust account or from another financial institution.  At the loan closing an automated payment authorization will be provided.

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Your settlement agent will contact you a few days before closing to go over our final costs and to confirm your loan terms.  If you're purchasing a new home, the numbers we'll have at that point are related to your new mortgage only.  Additional costs or even credits may need to be applied based on your agreement with the seller.  The closing agent, or attorney will calculate the exact amount that you'll need to bring to closing.  They'll contact you at least 24 hours prior to closing with the final figures.  The funds you bring to closing must be certified form such as a bank check or money order, made payable to the closing agent or attorney