5315 Lee Highway   

Arlington, Virginia 22207

703.531.1088 phone

Buyers

The primary purpose of a real estate settlement, or closing, is to obtain buyer and seller signatures on transactional documents.  Buyer documents will vary depending on the type of loan and the lender, but will always include the items listed below. 

HUD 1 Settlement Statement

The HUD 1 includes all financial details of the purchase.  Disbursements by Chatham Title are directed by the HUD 1.  Credits/debits that have occurred outside of closing will be shown on the HUD 1; payments made by the buyer or seller prior to settlement will be shown as POC (paid outside of closing).  The HUD 1 Settlement Statement is prepared by Chatham Title using information gathered from various sources.  The final details of the loan are included in the lender's instructions which accompany the loan package and are inserted into the HUD 1 by Chatham Title.

Note

The Promissory Note is the buyer's pledge to repay the loan which is being closed at settlement.  The Note is prepared by the lender and delivered to Chatham Title for signature.  The exact terms of the loan are detailed in the Note which is a standard Fannie Mae/Freddie Mac template and may not be amended in any way by the buyer or Chatham Title staff without specific direction from the lender.  If the Note is incorrect, the lender will have to send a revised document for signature. 

Deed of Trust

The Deed of Trust is the buyer's commitment of real property as collateral to secure the loan identified in the Note.  The Deed of Trust is prepared by the lender.  In Virginia, the lender (mortgagor) will receive the Deed of Trust after it has been recorded and will hold it until it is paid in full.  The Deed of Trust is recorded at the appropriate courthouse to provide public notice that there is a lien on the property.

Truth in Lending Statement

Federal law requires a clear statement to the consumer regarding lender fees.  The Truth in Lending (TIL) Statement reduces the details of the Note to a single page to inform the borrower of the full cost of the loan.

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