What documents should I receive before closing on a mortgage loan?

You can expect to receive various types of documents:

Documents required by federal law

These documents inform you of the key terms, provisions, and costs of your loan. They outline your key rights and responsibilities as a borrower and record the transaction between you and your lender.

These documents include:

• The Loan Estimate is a form that lays out important information about the loan you applied for. The lender sends you a Loan Estimate within three business days of receiving your application. Visit our interactive sample Loan Estimate with tips and definitions.
• The Closing Disclosure is a form that lists all final terms of the loan you’ve selected, final closing costs, and the details of who pays and who receives money at closing. Your lender sends you a Closing Disclosure at least three business days before closing. Visit our interactive sample Closing Disclosure with tips and definitions.

• The Notice of the Right to Rescind for loans not used to purchase a home, for example, a refinance or home equity line of credit. This notice informs you that you have three business days from the lender’s fulfillment of certain conditions to cancel your loan and provides a form for cancelling the loan.
• The Initial Escrow Statement, which lists the estimated taxes, insurance premiums, and other charges the lender anticipates paying from your escrow account during the first year of your loan.

Note: You will not receive a Loan Estimate or Closing Disclosure if you are shopping for:

• A reverse mortgage
• A home equity line of credit (HELOC)
• A manufactured housing or mobile home loan not secured by real estate
• A subordinate loan through certain types of homebuyer assistance programs

For these kinds of loans, you should receive Truth-in-Lending disclosures. If you are shopping for a reverse mortgage, you will also receive a Good Faith Estimate (GFE) and a HUD-1 Settlement Statement.

Contractual documents include:

• A promissory note, which describes what you are agreeing to. It provides you with details regarding your loan, including:
  • The amount you owe
  • The interest rate of the mortgage loan
  • The dates when the payments are to be made
  • The total amount you will pay
  • The length of time for repayment
  • Whether and how the payment amounts can change
  • The place where the payments are to be sent
• A mortgage or security instrument: This explains your responsibilities and rights as a borrower. The mortgage grants the lender or servicer the right to foreclose on your home if you fail to make payments as you’ve agreed.
• State and local government-mandated documents: These are documents that fulfill state and local government requirements, generally for the purpose of collecting information and protecting you.
• Lender documents: These are documents added by the lender, for example, an affidavit of occupancy.

The CFPB has resources to help you review your closing documents:

• Our interactive guide to the Closing Disclosure helps you double-check the details and get definitions for unfamiliar terms.
• Our guide to closing forms helps you spot what to look for in your promissory note, mortgage (security instrument), initial escrow disclosure, and right to cancel.
• Our closing checklist helps you know what to expect at closing and what questions to ask.