Buying a house can feel like a lot of work. From looking for a house, putting in an offer, going through negotiations, finding the best interest rate, and applying for a mortgage, the process is arduous. It often takes several months, and waiting to close on your new home can be nerve-wracking. But eventually, the day will come. To help you know what to expect at closing, here’s an overview of the process.
At least three days before closing, your lender will give you a closing disclosure form. This essential document details the terms, conditions, and costs associated with your loan. Be sure to compare it with the loan estimate you received shortly after applying for your loan. If anything looks different, ask your lender to explain the changes. Ideally, your loan estimate and disclosure should be a close match in terms of the fees and costs you will need to pay at closing.
As a general rule, all fees included in your closing costs fall under three categories: third-party charges, lender charges, and prepaid items. Here’s an overview of these fees.
Once you’ve compared the disclosure document with the loan estimate and understand your closing costs, it’s time to get ready for your closing. Closing costs usually need to be paid with a cashier’s check or wire transfer, so be sure to plan for that. On the day of your closing, you’ll bring identification, the closing disclosure document, a copy of your homeowner’s insurance policy, and the purchase contract. Your lender, closing attorney, and real estate agent will also give you additional clarification and directions specific to your loan and state’s requirements.
On the day of your closing, you and your agent will visit the property for a final walkthrough. This is when you’ll verify that any agreed-upon repairs were made and the property is in good condition.
Next, you will head to your closing appointment, which usually happens at your title company’s office. Your closing agent or attorney and real estate agent will both be there to support you. As you would expect, there will be countless forms to sign. You’ll have to sign a few general forms, like the affidavit declaring the information you’ve given your lender is true. But there are four primary documents associated with your loan and new home.
Once you’ve finished signing all the documents, you get the keys to your new home, and the process is complete. You will be a homeowner, and you can sigh with relief that all the hard work is done. If you’ve missed the earlier posts in this home buyer mortgage series, you can find them here on our website. We’ve covered all the essential things to know about buying a house with a mortgage. Or you can start searching for your dream home here too. Our ad-free MLS listing platform means your new home is just a click away. Home search.HOME Sell Your Home Our Home Selling Process Whats Your Home Worth Free Listing Consultation Home Selling Knowledge Base Home Search Our Home Buying Process Buying a New Build What Is Home Captain Who Is Home Captain Testimonials Contact Agent Network Blog ENTERPRISE SOLUTIONS