Congratulations, you’ve found your dream home. Your offer was accepted. The house has been inspected and repairs have been made. The house has been appraised. The underwriter has approved your loan. And you’ve had your final walk-through of the property. Now it’s time for your closing.

Some people feel a little intimidated by the closing, but it’s really not that complicated. So, what can you expect? In a nutshell, closing is the final step in the loan process when the home finally becomes yours.

On the day before closing, you should gather all the paperwork you’ve received during the home-buying process in case you need to refer to them. These documents include: the good-faith estimate, contract, proof of title search and insurance (if necessary), flood certificate, proof of homeowners insurance and mortgage insurance, home appraisal and inspection reports.

On closing day, you’ll meet at the closing agent’s office. Closing usually lasts an hour or longer. Depending on your state’s requirements, the following people will attend the closing:

• You.
• Home seller(s).
• Your and the seller’s attorney, if you each have one.
• Real estate agents for both you and the seller.
• Builder’s representative (if the home is a new build).
• Lender’s representative.
• Closing agent, who may work for the lender or the title company. The closing agent conducts the meeting, making sure all the documents are signed and recorded, and that the closing fees and escrow payments are paid and distributed.

During the meeting, you’ll need to show evidence of having a paid homeowner’s insurance policy and a home inspection. The closing agent will list what you owe to the seller and what the seller owes to you. Once everything is verified, you and the seller will sign the settlement statement which itemizes the services provided and the fees charged. Also, you’ll review and sign the following loan documents:

• Mortgage or deed of trust – Secures the note and gives your lender a claim against the home if you fail to live up to the terms of the mortgage note.
• Mortgage note – States your promise to repay the mortgage. It provides the details of your loan, including the loan amount, interest rate and length of time to repay the loan. It also explains the penalties if you fail to make payments.
• Truth-in-Lending statement – Is a full written disclosure of the terms and conditions of mortgage, including the annual percentage rate and other fees.

Make sure you read and understand all documents before you sign them. Ask questions if you don’t understand something you’re signing. Also, don’t sign any forms if there are blank spaces. 

Once all the papers are in order, you’ll provide a certified or cashier’s check to cover your down payment and closing costs. Or, in some cases, this money will be paid from an escrow account that is established.  

The closing costs, which may vary, include: loan origination fees, document preparation fees, recording fees, appraisal fees, escrow fees, attorneys’ fees, property taxes to cover the period to the closing date, interest from the closing date to one month before the first monthly payment, and the first escrow payment.  

Once everything is signed and the funds have been transferred, you’ll receive the keys to your new home! 

If you’re thinking about buying a new home, contact Grandview Lending. Our Senior Mortgage Specialists can help you find the right loan based on your needs.