The loan closing is a meeting to execute all legal documents, collect monies due, and disburse loan proceeds. It's usually held at a title company. If you are purchasing a home, the sellers may attend the closing, as may their real estate agent and attorney if appropriate. Your real estate agent and a representative from Old Second will join you.

Documents you'll review at loan closing:

1. Mortgage Note — a promise to pay Old Second back for the money borrowed. The note details the terms of the loan including the amount borrowed, interest rate agreed upon, the amount of the monthly principal and interest payments and the time and place where payments must be sent.



2. Mortgage/Deed of Trust — a pledge of property or a security instrument where the borrower conveys title to the property to a trustee as security for the lender until the loan is paid off. The Mortgage or Deed is recorded in the official records of the town where the property is located.



3. HUD-1 Settlement Statement — a Department of Housing and Urban Development form that discloses all costs and monies transferred in a loan transaction.



4. Riders to Mortgage/Deed of Trust — an addendum or amendment to the Mortgage or Deed of Trust. Riders are usually required for adjustable rate mortgages, balloon loans, multi-family properties, condominiums and second homes, among other reasons.



5. A final copy of your loan application.



6. A Truth in Lending document.



7. Various other disclosures required by federal and state agencies.