Settlement - What to Expect

The real estate closing is the meeting at which the sale is finalized and you assume official ownership of your new home. Money is exchanged and forms (many forms!) are signed. By the end of the meeting, the property is yours!

Most closings are actually two separate closings: 1) closing on the purchase of real estate 2) closing on the mortgage loan that you are taking out to make the purchase. Documents you can expect to see at closing include:


Settlement Disclosure Statement:

This disclosure document is required by Federal Law and is intended to disclose to the borrower an estimate of the annual cost of the loan AND the total cost of the loan over the full term – including all costs and fees associated with obtaining the loan.

Click here to review a sample document. 


ALTA Settlement Statement:

This Federal form is the statement that outlines all charges being assessed to both the buyer and the seller. 

Click here to review a sample ALTA Statement


Mortgage Note:

The note is simply your agreement to repay the borrowed funds to your lender. The note will include the terms and conditions as well as the manner of repayment options.

Click here to review a sample Mortgage Note. 


Deed of Trust:

The Deed of Trust is the legal security instrument that establishes the lenders lien on the property for the amount of the loan. It also secures the home as collateral for the repayment of the loan.

Click here to review a sample Deed of Trust

Loan Commitment Letter:

This letter from your lender will confirm the terms of the loan, interest rate, and length of the loan. It will also note any other requirements such as hazard insurance, survey, or termite inspection.


Loan Application:

Your lender will typically require you to sign a printed copy of your loan application that you previously provided during the loan application process. You will verify that the information is correct and that there are no major changes to your employment, income, debts, etc.

Click here to review a sample Loan Application


Name Affidavit:
This document includes any other names you are known by that may have been included on your credit report or other loan processing documents

Click here to review a sample Name Affidavit


Flood Insurance:

The Flood Insurance document will indicate whether or not your property is located in a possible flood zone. If is it, the lender may require you to carry a flood insurance policy on the property.


Tax Authorization:
Your lender might require you to sign written instructions to the Tax Authority instructing them to bill your lender for future tax payments.


Termite Inspection:
If a termite inspection was required or performed as part of your contract, you will likely sign a copy of the termite inspection report at settlement.

Click here to review sample Termite Inspection Report


This IRS form is completed and submitted to the IRS so you can make mortgage interest deductions come tax season


After your settlement, the closing company will finalize and record documents by completing the following: record the deed or deed of trust in the land records at the courthouse, audit the disbursement instructions, disburse proceeds, issue the title insurance policy, send signed loan documents to the lender, pay off the seller’s lender, and obtain record of release of the Seller’s Deed of Trust. 


1313 14th St NW Washington, DC 20005 

Office: 202.366.2000  Cell: 202.725.6357

© 2019 By Andrew Turczyn, Real Estate Broker 

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Compass is a licensed real estate brokerage that abides by Equal Housing Opportunity laws. Information is compiled from sources deemed reliable but is not guaranteed. All measurements and square footages are approximate. This is not intended to solicit property already listed. Compass is licensed as Compass Real Estate in DC and as Compass in Virginia and Maryland. DC office: 202.386.6330. Maryland office: 301.298.1001.