HOME BUYER'S GUIDE

( Closing on Your Home )

What Happens During the Days Leading Up to Closing

You discovered a home that suits your requirements, had your offer accepted and were given loan approval. You've finally reached the point where you're ready to sign on the dotted line. Closing is when you sign all of your mortgage paperwork and, in most cases, gain possession of your new home. Here's everything you need to know about shutting a business.
Accept Responsibility for Your Closing Disclosure
You'll get a Closing Disclosure document before your closing, which will summarize your loan's final costs.
It's critical that you acknowledge receipt of the paper as soon as possible. Your lender must provide you with the Closing Disclosure three business days before closing, so if you do not acknowledge receipt of your Closing Disclosure promptly, your closing may be delayed.
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Take part in a final walk-through.

In most circumstances, you'll have up to one day before closing to complete a walk-through examination of the property to ensure everything is in working order. This is to ensure that the property is in the condition specified in your purchase contract. As you take one last look at the property before closing, here are some questions to consider:

    • Is it true that all of the agreed-upon repairs have been completed?

    • Were all appliances, window coverings, and other items listed in the purchase agreement left behind by the sellers? Are these items in the condition that you anticipated?

    • Did the sellers cause any damage to the property during their move out?

    • Are the lights and faucets operational?

    • Is it possible to open the garage door?

    • Have the seller removed all dangerous materials, such as old paint cans and construction materials?

If there are any severe concerns, you can request a postponement of the closing or contact the listing agent to work out a reasonable solution.

What and Who to Bring to Closing

What Should You Bring

    • A valid driver's license or other government-issued photo identification

    • To pay your down payment and closing charges, you'll need a cashier's check or proof of wire transfer.

    • Compare your Closing Disclosure to the final papers.

    • If you have any questions, have a list of crucial contacts on hand, such as your agent or lawyer.

Who Should Attend
All buyers on loan should plan to attend the closing. If you can't be present, you can close, but you'll need to grant someone power of attorney. In certain states, both the buyer and the seller attend the closing, whereas each party attends a separate closing in others. In other words, you may or may not see the seller at closing. A closing agent is likely to assist you with the process. They're an unbiased third party who can assist both the buyer and the vendor. Your real estate agent, of course, is welcome to attend, but it is not essential.

What You'll Have to Pay When You Close

You'll get the keys to your home at closing, and you'll have to pay any closing costs. The following is a list of the most frequent upfront costs:
    • A down payment: Your down payment will be applied to your home's equity.
    • Funds held in escrow: Your lender will collect these monies at closing to ensure that you have enough money in your account to pay your tax and insurance expenses when they become due.
    • Fees charged by third parties: This covers the fees your lender pays to other parties to process your loan. Appraisal fees, title insurance expenses, and credit report fees are typical examples of these fees.
    • Interest daily: You'll pay daily interest up front to cover the time between closing and your first mortgage payment.
    • Dues to the homeowners' association (HOA): You may be forced to pay a year's worth of HOA dues at closing if you're moving somewhere with HOA dues.
    • Discount points: A point (sometimes known as a discount point) is a cost that you pay to reduce your interest rate. If you've elected to pay points, you'll have to pay them at the end of the transaction.