6 Important Things to Expect When Closing

The time has finally come. After finding the home of your dreams and placing a solid offer, the seller has agreed and you’re on your way to living in a new neighborhood! Before you can claim the keys and start moving in, there are a few important tasks you need to complete. The step that stands between and your new home is called closing, and it can be a bit confusing for first-time and seasoned buyers alike. Here are 6 crucial things you can expect at your upcoming closing:

There Will Be a Lot of People There

Closing day can involve quite a few people aside from you! You will find your agent, a title company representative, and a closing agent, who may work for the lender or title company. You may also find the seller in attendance, along with their agent. Of course, this cast of characters varies from state to state, but this is the general idea. All of these people are there to witness the transference of ownership and to ensure that everything goes smoothly.

You’ll Need to Come Prepared

Speaking of documents, you will need to do a bit of homework before the big day happens. Review the closing disclosure, which outlines the terms of your loan, any outstanding charges or fees, and final closing costs. You should receive this a few days before closing! Along with this paperwork, you’ll also need to bring proof of homeowners insurance, your home inspection reports, a copy of your contract with the seller, and a government-issued photo ID – usually, a driver’s license works just fine.

Remember the Down Payment

You will already know how much the down payment will be prior to closing, so make sure your bring it along with you! You can either transfer your funds or bring it in the form of a cashier’s check made out to the escrow company.

You’ll Be Signing – A Lot

Rest up your hand and prepare to sign quite a few legal documents on the day of closing. These documents include the agreement between you and your lender about mortgage terms and conditions and the agreement between the seller and you in transferring the ownership of the property. Remember to read everything carefully before signing them!

You’ll Bring Home a Lot of Documents, Too

You won’t just be leaving the closing with the keys to your new home. You’ll also be receiving a handful of important documents, which you should keep in a safe location for future reference. Here’s what you can look forward to receiving:

• The loan estimate
• The closing disclosure
• The initial escrow estimate
• The mortgage note
• Mortgage or deed of trust
• Certificate of occupancy

Do a Final Walk-Through Beforehand

Before closing, take the time to walk through your soon-to-be home one last time. This will verify that any repairs the sellers agreed to were made. If conditions aren’t what you expected – repairs still need to be made or the sellers have not yet vacated – your closing may be delayed.

After you’ve signed all the important paperwork, received your documents, and made your down payment, the house is yours! Now the biggest thing you’ll have to worry about is how you want to celebrate with your friends and family.