The process of purchasing a new home is both exhilarating and overwhelming. When the closing date finally rolls around, buyers may find themselves exhausted but hopeful that everything will go according to plan. This is particularly true when buying a house for the first time. Knowing what to expect from the closing can make buyers feel prepared for the process, thereby easing any worries or fears that they might have.
The people on your team can have a huge impact on your closing as well. If you are working with a top notch Realtor, as well as a conscientious mortgage lender, everything should be okay. There’s a lot that goes on at a closing, and there are a number of different people involved. All of those individuals want to help you get your new keys in your hand.
What is a closing? What do you need to to do get ready to close on a house? The first step in the process is to maintain communication with your Realtor and lender. If they aren’t emailing you to check in, you should contact them to find out what is going on and if there is anything else that you need to do. One way to prevent surprises leading up to closing is to make sure that everyone is communicating with one another. In addition, it is important not to apply for additional credit during this time period. You should also avoid making big purchases. Your lender will check your credit at the beginning of the home buying process, but they also check it again near the end. Therefore, you want to maintain the status quo.
Don’t head to the closing table without walking through the new property one last time. This is important because you want to make sure that nothing significant has changed in the last few weeks. For example, movers could have damaged a wall when getting the old furniture out of the house. If there are any problems, you want to make sure they are resolved before you sign on the dotted line.
Keep all paperwork from your lender handy. When you first apply for the home loan, you should get a Loan Estimate. Just before closing, you should receive a Closing Disclosure. Go over both of those forms, and make sure they are correct.
What do you need to have at closing? Get ready to sign a lot of paperwork! To be as prepared as possible, make sure you have two forms of ID. If you need cash to close, have that handy. Finally, bring your checkbook in case anything unexpected pops up.
Occasionally, the “cash to close” amount may be slightly overestimated. If this happens in your case, you will get a refund check as soon as possible.
There may be several people at the closing table. Both the buyer’s agent and the seller’s agent can attend. The sellers themselves might be there, although they can take care of signing their portion of the paperwork ahead of time. The closing attorney will be present, and it is also possible to see the mortgage lender there as well.
The closing attorney does not take sides in this process; they are not there specifically for either the buyer or the seller. Instead, they are representing the lender and will help everyone at the closing table understand what is going on and the paperwork involved.
When Does It Happen?
There is so much paperwork involved with a closing that it is easy to get overwhelmed. You may want to write your signature as quickly as possible just so that you can get through it all and be finished. However, this is not a good idea. Not all the paperwork is absolutely crucial, but there will be a few forms that need special attention.
Be sure to look over the Closing Disclosure carefully. Take out your Loan Estimate and make sure the two match up and make sense. Your Closing Disclosure needs to list all the fees that you are being charged, including your homeowners insurance, property taxes, and even HOA fees. Depending on your loan, you may have to put a certain amount of money into escrow during the closing process.
Make sure the numbers are correct on all forms. In particular, double check the loan amount, the interest rate, and the terms. While at closing, you’ll also be given other forms to sign. These usually are not binding, and you just need to sign them to show that you got them. Everything that you sign at closing will be duplicated so that you have a copy to keep. You may get the documents in paper form, or you may be sent them electronically.
Once the closing is complete, the deed will be recorded. Normally, either the title agent or closing attorney does that. You will be given the keys to the new home, and you can finally relax. The process of buying a home is over and you can celebrate!