The final steps before your closing
You have just a few more steps to take before you walk away with the keys to your home. Make sure you know what happens at closing and what you can do to ensure it’s a smooth process.
Prepare yourself for some of the most common surprises that may occur before closing.
Learn the importance of title insurance, which ensures that you will be the sole owner of the property.
How much home can you afford?
Take the first step and get prequalified.
Steps you need to complete before closing
Schedule a final walk-through
Schedule your final walk-through about a week before your closing, so you know exactly what you’re purchasing and its current state. During your walk-through, check the furnace, air conditioner, major appliances and toilets to make sure they are working. If you asked for something to be repaired, make sure it’s fixed or you’ll have to pay for it if you wait until after closing. And if there’s something you want to keep, like a lighting fixture, request it in writing. If you don’t and it’s gone after you move in, you won’t get it back.
Review your Closing Disclosure
Three business days before closing you will receive a Closing Disclosure. This document itemizes all of the funds and costs paid by the buyer and seller either at or before closing. This document will show the loan amount, interest rate, loan term, origination fees, title insurance, deposits for property insurance and taxes, homeowners insurance and any other fees. Review the Closing Disclosure carefully and compare it to the Loan Estimate you received to make sure there are no last minute changes.
Bring a certified cashier’s or bank check to your closing if you need to pay any closing costs and your down payment.
Here’s what to expect at closing
The mortgage closing process varies from state to state. In states with “round table” closings, you’ll meet at the office of a settlement agent or attorney to sign documents and complete your purchase. In “escrow” states, an escrow agent will collect documents from the buyer, seller and lender and make sure the terms of the transaction are carried out.
You’ll receive and will review these documents during your closing:
Final Closing Disclosure
This is the final version of the document you received 3 business days before closing. Check for any last minute changes.
Your deed of trust or mortgage
The deed is a document that grants the lender a lien on the property.
The promissory note
The note is your binding legal agreement to make payments to the lender according to the terms of your mortgage.
Talk with your Mortgage Banker to see how he or she can help you with your closing. Once you’ve signed all of your closing documents, you’ll get the keys to your new home!