What To Expect During Closing

Closing is the last step of the transaction: a meeting with legal representatives where ownership of a property is transferred from seller to buyer. There are a few things you should be aware of prior to closing, and you should also know what to expect during the meeting.

First and foremost, you should review the closing disclosure, a document outlining the terms of your loan, final closing costs, and any outstanding charges or fees.

Lending Team provides you with an estimate of your closing costs long before your closing date. We will send you this form at least three days before closing. Once you sign the closing disclosure, there’s a three-day waiting period before you can sign the mortgage loan documents, during which you can review all of the proposed fees.

Before the closing, you should also do a final walk-through of the property. Verify that all agreed-upon repairs were made, the seller has vacated the property, and the house is in the condition you expected. Most home-sale contracts entitle you to a walk-through inspection of the property 24 hours before closing. If there are issues, you can ask to delay the closing or request that the seller deposit money into an escrow account to cover any necessary repairs.

The closing meeting involves a few steps:

Sign legal documents. There are essentially two agreements to be signed: between you and your lender regarding the terms and conditions of the mortgage, and between you and the seller transferring ownership of the property. Be sure to read all documents carefully before signing them, and do not sign forms with misspelled names or blank lines/spaces.

Pay the down payment and closing costs. Along with the down payment or other prepayments related to your home purchase, there are numerous fees associated with getting a mortgage and transferring property ownership. These closing costs are outlined in a closing disclosure document sent to you at least three business days before your closing day. The payment of closing costs is usually made in the form of a cashier’s check or wire transfer.

Closing procedures vary from state to state and even county to county, but the following parties will generally be present at the closing:

• -Closing agent, usually an attorney, who might work for us or the title company
• -Title company representative, who provides written evidence of the ownership of the property
• -Home seller
• -Seller’s real estate agent
• -You, also known as the mortgagor
• -Us, the lender, also known as the mortgagee

The closing agent conducts the meeting and makes sure that all documents are signed and recorded properly, and that closing fees and escrow payments are paid and properly distributed.

At closing, you will receive the following key documents:

The loan estimate. This document contains important information about your loan, including terms, interest rate and closing costs. This is different from the mortgage note, but still, make sure all of the information is correct.

The closing disclosure. You receive this at least three days before closing, but it’s a good idea to have this with you at the meeting. The closing disclosure outlines all closing costs and fees.

The initial escrow statement. This form contains any payments we will pay from your escrow account during the first year of your mortgage. These charges include taxes and insurance.

Mortgage note. This document states your promise to repay the mortgage. It indicates the amount and terms of the loan and what the lender can do if you fail to make payments.

Mortgage or deed of trust. This document secures the note and gives us a claim against the home if you fail to live up to the terms of the mortgage note.

Certificate of occupancy. If you are buying a newly constructed house, you need this legal document to move in.

Once you’ve reviewed and signed all closing documents, whew! The house keys are yours and you will officially be a homeowner.