Specifications

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amount of the loan, plus interest. One-twelfth of your annual taxes and Homeowner’s
insurance will be added to the principal and interest payment to determine your total monthly
payment. Please note that APR (Annual Percentage Rate) is not the same as the mortgage
rate.
· Deed of Trust- This encumbers your home as security for repayment of the promissory note.
Closing Expenses
Certain customary items in connection with the property will be prorated to the date of closing such as
prepaid expenses or reserves required by your lender and homeowners association if applicable. Pro-
rations of general real property taxes and assessments will be based on the current year’s taxes and
assessments or, if they are unavailable, on the taxes and assessments for the prior year.
Bottom Line
The exact and final dollar figure that you are required to have for the purpose of closing your new
home transaction are only available from the title company. This final figure is available on the actual
closing date.
Although a reasonable closing estimate may be determined before the date of closing, the proration
of several items included is affected by the closing date and cannot be calculated until that date is
known. Please understand exact figures can only be given by the title company. All other figures are
estimates only.
Preparation
Plan to bring a certified check, made out to the Title Company, to the closing table. In your planning,
be sure to allow time to arrange for and obtain these funds. In addition, please keep the following
items in mind:
· Documents- The Real Estate Settlement Procedures Act (RESPA) provides you with many
protections. Under this law, you can review the settlement page that lists costs you are paying
at closing one day before the closing appointment. Although these documents are not
negotiable and thousands of homebuyers have signed them, you should read and understand
them.
· Insurance- You need to provide proof of a homeowner’s policy from your insurance company.
Your insurance agent should know exactly what is needed. We suggest you arrange for this at
least three weeks before the expected closing date.
· Palo Verde Homes or Lender Issues- The Title Company is not authorized to negotiate or
make representations on behalf of any of the parties involved in the closing. Therefore, please
discuss any questions, agreements, or other details directly with us or your lender prior to the
closing day.
· Utilities- Palo Verde Homes will have utility service removed from its name three days after
closing. You will need to notify all applicable utility companies of your move so that service is
provided in your name. We suggest that you contact these companies well ahead of time to
avoid any interruption in service. Utility company phone numbers are provided on the next
page to assist you in making these arrangements.