THE CLOSING PROCESS
Excited about finally moving into your new home? There’s just one more step left – the closing. Ownership is transferred to you from the seller and money is exchanged. It’s stressful but your real estate agent and attorney will be there to guide you through the process.
How do I prepare?
You should walk through the home within 24 hours of the closing to make sure it looks as you expected and is in move-in condition. If you discover something after the closing, you have no way out, so be sure to walk slowly and look carefully.
What do I bring to the closing?
The mortgage lender’s attorney will let you know exactly what documents you should bring. Typically, you need a form of photo or state-issued ID, a cashier’s check to cover the closing costs (the attorney will let you know the correct amount), and a homeowners insurance policy.
What happens during closing?
The closing usually takes place at the attorney or mortgage lender’s office. You will be asked to sign a lot of documents, so make sure you read each one closely.
For more information, visit the Home Loan Learning Center’s Closing Guide to learn more.
There are some costs that will need to be paid at the closing. Your attorney will go over your HUD-1 Statement with you, which itemizes all the costs. Some standard costs include:
- Attorney fees
- Title search (a check of the title records to ensure that the seller is the legal owner of the property and that there are no liens or other claims outstanding)
- Title insurance (to protect the lender and/or the buyer against loss arising from disputes over ownership of a property)
- Municipal lien search (to determine that there are no outstanding legal claims against the property that must be paid when the property is sold)
- Credit report and a certified plot plan
- A full-year insurance binder
- Recording fees and transfer charges
- Prepaid interest due on the mortgage for the month in which you are closing the loan
What documents are signed at closing?
Visit Home Loan Learning Center’s closing guide to find out which standard forms are signed at closing. Remember to talk to your attorney about what the forms entail and be sure to question anything that is not clear.