Law Office James Palmisano
417 Barre Street
Montpelier, Vermont 05602
Phone: (800) 585-3169
Phone: (802) 229-4001
Fax: (802) 229-2733



When a Buyer borrows funds to purchase real estate there are a number of loan documents signed at the closing related to financing.

The loan process begins with a loan application and ends with the closing. When the loan application is approved the lender issues a loan commitment letter, which states the loan has been approved and the lender will make the loan at the closing on specified conditions. The buyer is responsible to resolve all conditions in the loan commitment by the closing date.

The loan documents signed at closing usually include the following:

* Residential Loan Application
* Truth in Lending Disclosure
* Promissory Note
* Mortgage Deed
* Settlement Statement
* Escrow Account Statement
* IRS Form 4506-T
* IRS Form W-9

Property Tax Forms:

* HS-131 Homestead Declaration
* HS-132 Withdrawal Homestead Declaration


Changes in RESPA "Real Estate Settlement Procedures Act" requires use of new forms for mortgage transactions after January 1, 2010. The new rules require an accurate GFE "Good Faith Estimate" early in the application process to enable borrowers to shop effectively, (to address the problems that consumers faced during subprime mortgage debacle).

The new HUD1 now has references to the corresponding GFE sections so Borrowers can easily compare GFE's estimated costs with HUD1 final costs.

The new rules mandate that the final charges on the Settlement Statement cannot vary from those on the Good Faith Estimate by more than a certain amount. E.G. the final cost of title services, title insurance and document recording fees cannot vary from the Good Faith Estimate by more than 10%.

* New HUD1 "Settlement Statement"
* New GFE "Good Faith Estimate"