After weeks or even months of searching, you have finally found your dream home. You have secured a mortgage, negotiated a price you are comfortable with, and are just one-step away from being able to hold the keys to your new place.
Closing Day should be a very exciting and happy day for you but can also be a little overwhelming if you’re not prepared or don’t know what to expect. We are going to walk you through every step of the closing process so your closing day is filled with nothing but laughter, great food, keys, joy and also a ton of paperwork.
Before you get to settlement, review the Closing Disclosure. The Closing Disclosure or CD is a five-page document that gives you more details about your loan, its key terms, final closing costs, and any outstanding charges or fees.
Your lender is required to send the Closing Disclosure to you at least three days prior to settlement. According to the Consumer Financial Protection Bureau, if you applied for a mortgage prior to October 3, 2015, or if you’re applying for a reverse mortgage, you receive a HUD-1 Settlement Statement and a Truth-in-Lending disclosure instead of a Closing Disclosure.
The borrower’s contract usually will allow for a walk-through of the home a day before closing. It is important to make sure the previous owner has vacated AND that the home is in the condition that is agreed upon in the contract. If you any issues are found, make the sellers aware as soon as possible to prevent a delayed closing.
Photo ID: Your Settlement Agent will need to verify your identity. Make sure you bring a valid drivers license or passport.
Cashier or Certified Check: The check is needed to cover any closing costs you may owe and/or the down payment. If you prefer to wire the funds make sure you call the Title Insurance company a few days prior to closing to verify the wire instructions. It is also a good idea to bring your personal checkbook to closing for smaller fees and if any unforeseen expenses come up.
A full Table: Typically, at closing you can expect to see your Title Agent who will walk you through the flurry of paperwork and notarize each document, your real estate agent, the sellers, your seller’s agent, a representative from your bank or your lender, and your own, buyer and seller attorneys. Of course, this varies from state to state and from deal to deal.
A LOT of Signatures: You will be signing a lot of paperwork so be prepared for a potential hand cramp. These documents could include the loan estimate, the closing disclosure, the escrow statement, the mortgage note, deed of trust, and the certificate of occupancy.
A Few Surprises: Margaret Heidenry from Realtor.com advises that you “be prepared for things to go awry at the closing, like someone gets stuck in traffic, a document is missing, or a name is misspelled.” Usually everything will be okay, even if it means a small delay but do not schedule something two hours after closing just in case.
Keys: Finally, after all of the documents are signed and notarized, expect to be given the keys to your new home!
If you are closing with CoreTitle (and we hope you are) hang out for breakfast or lunch and make sure you get a photo with our massive key prop next to our big screen display highlighting your beautiful new place. Our team of experts will make you feel comfortable and informed throughout your settlement experience. We know this likely the biggest purchase of your life, get excited and be prepared! Meet our team on any of location pages on the website. Still have more questions? Check our FAQ page or reach out to any of our offices to inquire about our services.