At closing, you will be asked to sign the following documents...

Truth in Lending Disclosure:

You'll notice the Annual Percentage Rate (APR) shown on this form is almost always higher than the quoted interest rate. This is because the APR includes the loan origination fee, discount points and prepaid interest charged in connection with the loan. The APR is the "total cost of credit" - but the quoted interest rate will be on the Promissory Note.

The buyer signs this as a promise to repay the loan at the interest rate and over the time period required by the lender. It includes the monthly principal and interest payment, and such provisions as late charge and attorney's fees.

Should the buyer default on the loan, this document gives the lender the right to foreclose and possess the property. As long as the buyer makes required payments and complies with other provisions of the mortgage, nothing will occur. If the buyer defaults, the mortgagee/lender is authorized to begin foreclosure proceedings.

Officially known as the HUD-1 Settlement Statement, this lists the financial aspects of the transaction. All charges required by the contract, lender fees and other closing costs are included, as well as the amount the buyer is to bring to closing, and the net proceeds the seller will receive.

The Warranty Deed is how the seller actually conveys the title to the property to the buyer. The Owner's Affidavit allows the seller to verify that he or she does have good title to the property, that there are no loans against it other than loans assumed by the buyer, and there are no leases that may affect title to the property.

Various miscellaneous forms are required, and these may differ from lender to lender. Some are required by FHA, VA or FANNIE MAE, and others are somewhat innocuous forms such as Name Affidavits and Affidavits of Occupancy. All in all, the buyer can expect to sign approximately 40 times and the seller 15 times in the typical real estate transaction.