How Purchase Closings Differ from Refinances
Purchase loan packages are larger, more emotionally charged, and more likely to involve multiple parties than refinances. Typical purchase packages run 150–200+ pages. If both buyer and seller are present simultaneously, you may be managing two separate packages and two sets of signers at the same table.
The Buyer Package
Closing Disclosure
The purchase CD is more detailed than a refinance CD because it must account for the purchase price, earnest money, seller concessions, property tax proration, and all lender costs. First-time homebuyers often spend significant time on this document. Budget extra time and expect questions about fees they weren't expecting to see itemized.
Promissory Note and Deed of Trust
Same function as in a refinance, but in a purchase the deed of trust conveys a new security interest in the property being purchased, not a refinanced existing property. The deed of trust will reference the purchase price and may include riders for PMI, condominium, or adjustable-rate provisions.
Title Insurance Documents
Purchase transactions typically include owner's title insurance and lender's title insurance. The buyer may sign a commitment, a title insurance policy acknowledgment, and related documents. These are not notarized but explain what title insurance covers and does not cover.
Transfer Documents
Documents such as the grant deed or warranty deed transfer title from seller to buyer. These are signed by the seller and are among the most critical documents in the transaction — they are what actually changes ownership. The grant deed or warranty deed is notarized.
The Seller Package (When Present)
If seller documents are handled at the same appointment, the seller's package typically includes:
- Grant deed or warranty deed — transferring title; signed and notarized by the seller
- Seller's affidavit — certifying various facts about the property and title
- 1099-S acknowledgment — the seller's acknowledgment of the proceeds of sale for IRS reporting
- Payoff authorization — if the seller has an existing mortgage being paid off at close
FAQ
No. The federal right of rescission applies only to refinances and HELOCs on a borrower's primary residence. It does not apply to purchase transactions. This is a common point of confusion for first-time homebuyers who have heard of the right to cancel from other contexts.
Remove yourself from the dispute immediately and call the title company. You are not a mediator. A dispute about the condition of the property, concessions that weren't honored, or other deal issues is outside your role entirely. The title company or escrow officer has authority to address these situations; you do not.