As the housing market sees a slight improvement, and many sources are stating the general public is feeling better about the economy, it seems natural that we'll see an increased interest in house hunting. With that comes more houses on the market, more houses purchased and more mortgages written.

So let's say you found your dream home, and today is closing day. What is going to happen?

In a nutshell, Closing is the final step in the loan process, when ownership becomes yours. The title is transferred from the seller to you, the buyer. You'll sign the loan documents and will receive ownership of one more thing besides your house - you now own the mortgage!

Three terms to help you prepare - Closing Statement, Closing Costs and Closing Process.

Closing Statement

This is a detailed statement listing all of the charges you will pay, plus the loan funds you will receive.

Closing Costs

These costs are all the fees paid by you, the borrower, at closing. They include origination fees and loan processing fees.

Closing Process

You'll feel like you're signing your life away with all the papers that require your signature. You will:

Sign documents. These will be the agreement between you, the buyer, and the lender (terms and conditions of the mortgage) and the agreement between you and the seller (transferring ownership).

Pay closing costs and (possibly) escrow items.

Be sure to review all closing documents before signing them. If you have any questions, do not hesitate to ask. This is a major financial commitment and you must understand each step of the process and each document you sign.

At this point - congratulations! - the house is yours!