May 23rd, 2019 7:36 AM by Jackie A. Graves, President
Your loan application was approved, your offer was
accepted, and you are ready
to move into your dream home. While the prospect of homeownership is on the horizon, you
haven't reached the end of your journey yet: it's time to close the deal.
Here's what to expect, and how to minimize the unexpected, on the road to
Closing, also called
settlement, is a meeting where the final documents are signed, the closing
costs are paid, and ownership of the home is officially transferred to you.
After your offer is accepted it takes time to lock all the details in place and
set your closing date. According to the latest data pdf,
the average time to close a purchase loan is 43 days.
before your closing date, you'll receive your Closing Disclosure. This document
will lay out the final details of the loan and closing costs you have agreed
to. It will break down your loan terms, projected payments, actual fees, and
other costs and credits. Review your closing disclosure carefully. If you note
any large variations from the costs your lender provided in your Loan Estimate,
reach out for clarification.
request a formal walk through of the home 24 hours before closing. Be sure to
check that all required repairs have been made, the home is in the agreed upon
condition and that the seller has completely vacated the property.
can be intimidating, there will be lots of paperwork to sign, and the process
can take a few hours. Take as much time as you need to read through and
understand each item, and don't hesitate to ask questions.
Closings usually take place at
a title company with your real estate agent, a closing agent, you and any
co-borrower(s), and the seller's real estate agent. Be sure to bring all
documentation related to your purchase including proof of homeowner's insurance
and a copy of the purchase contract.
In addition to the documents
you bring, you'll have a handful of documents to review and sign when you
arrive. It is your responsibility to fully understand the primary closing documents which you
are legally committing to when you sign. These include a promissory note, a document
indicating that you have accepted the mortgage loan from your lender and
several affidavits and declarations, which are legally binding documents that
spell out your financial obligations and rights as a homeowner.
Be prepared to pay things like
any outstanding escrow items or closing costs that aren't rolled into the loan
– usually by cashier's check or wire transfer.
When everything is signed and
completed, you'll receive the keys to your new home!
important to understand the closing process so
that when your settlement date arrives, you're prepared. While it may seem
daunting, it will go much smoother if you take your time and have a trusted
team with you to answer your questions.
information on the homebuying process, be sure to follow our spring
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