Closing on your first home involves unfamiliar documents and costs that affect your budget. Knowing what you will sign and what to review can help you catch errors before they become problems.
Connecticut law requires a Connecticut-admitted attorney in good standing to conduct qualifying real estate closings. This includes transactions involving a change in property ownership. Certain transactions are excluded under state law.
The promissory note and mortgage
If you finance your purchase, you will generally sign a promissory note and a mortgage document. By signing the promissory note, you agree to repay the borrowed money under the terms of your loan, including its interest rate and payment schedule. The mortgage gives the lender a security interest in the property and allows the lender to pursue foreclosure if you default.
The Closing Disclosure and title documents
Your Closing Disclosure lists your final loan terms and closing costs. Federal law generally requires your lender to provide it at least three business days before closing. Compare it with your Loan Estimate and ask about unexpected fees before signing.
The Consumer Financial Protection Bureau’s closing guide explains what to review and which documents to request in advance.
Title insurance protects against certain title defects or ownership claims. A lender may require a lender’s policy, while an owner’s policy may be available for additional protection. The seller generally signs the deed transferring ownership to you.
Affidavits and other closing forms
You may sign an occupancy affidavit confirming your intent to live in the home as your primary residence. Lenders may also require other affidavits or loan-specific forms. If a co-buyer cannot attend, they may be able to authorize another person to sign on their behalf through a power of attorney, subject to the lender’s and closing attorney’s requirements.
Connecticut also imposes real estate conveyance tax on applicable property transfers. The seller, their authorized representative or an agent generally handles the required tax return and payment.
Review documents before you sign
Ask for your closing documents in advance. Check names, loan terms and costs and flag any discrepancies before signing. If you have questions about the closing process or want to know what to expect, call or get in touch online to schedule a consultation.