1. Rent or Buy? | 2. Clean Up Your Credit | 3. Get Pre-Qualified | 4. Find an Agent |
5. Get Pre-Approved | 6. Make an Offer | 7. Home Inspection | 8. Prepare for Closing |
9. Attend the Closing

8. Prepare for Closing

Close on Your Home

Once your application for a mortgage loan has been approved and you have received a commitment letter, the final step before you can call the house your own is the closing, or settlement. The closing is the completion of a real estate sale and loan transaction. It's the final step in the home buying process. At closing, you will sign the mortgage loan documents, the seller will execute the deed to the property, funds will be collected and disbursed and the closing agent will record the necessary instruments to give you legal ownership of the property. You will also get the keys to your new home!

The closing of a mortgage loan is a legal process, with many details and requirements. But a general description of closing practices can help you through the process.

Set the Time & Date for Closing

As soon as you receive firm approval from the lender who is making your mortgage loan, you should confirm the actual date of loan closing. The timing of your closing is important. You'll want to schedule it to your best advantage. For instance, you might want to schedule it toward the end of your lease so as to not pay unnecessary rent, or, if possible, around the time of the closing of the home you're selling.

The settlement date also has to allow adequate time to assemble all of the required documentation. Most lenders require at last 3 to 5 days advance notice of the closing date in order to prepare the loan documents and get them to the closing agent. If repairs or maintenance on the property are a part of the lender's commitment, there must be time to complete them. The real estate agents involved in the sale transaction and the lender are often the best people to coordinate the closing arrangements.

Review Closing Costs

A day before your closing, your mortgage advisor will review your final closing costs. You'll be required to pay your closing costs and down payment at the settlement. It's important to know before the closing date how much money you'll need at closing. You typically need to come to the closing with a certified check for the closing costs, including the balance of the down payment.

Be Sure To Do a Walk Through

It's customary to take a final walk through of the property shortly before the closing to make sure the home is in the condition you expect it to be. Within 24 hours prior to the actual closing, you and your real estate agent should make a final inspection of the property to make sure any required repairs have been completed, all property described in the sale contract, such as kitchen appliances, carpeting and draperies are present and that no recent fire or storm damage has occurred.

Prepare Closing Documents and Closing Costs

There are standard documents and exhibits that are commonly required for a loan closing, regardless of jurisdiction, and your mortgage company typically completes these documents.

Do you need to verify whether there are any additional documents that are required to ensure a smooth closing process? Call us today at 866-255-3535.