Closing If your loan is approved by underwriting, the final step is the closing of the loan. In Florida, a closing attorney will prepare all of the closing documents. They will also check the title of the property, to make sure it is free to be sold. This rate may be higher than your actual interest rate, because it includes points, fees and other costs of credit. It also details the penalties that will be assessed if you default or violate any of the terms.
Property is pledged by the borrower to the lender, as security for repayment of the loan.
The pledge ends when the loan is paid off. It is the document that transfers ownership from the seller to you. You will be asked to sign numerous affidavits. They also look for signs of stability. Do you have enough cash for the down payment, closing costs, pre-paid expenses, and a reserve fund left over after closing.