When house hunting, we often think about open houses, inspections, and moving in. But we rarely consider what happens at the house closing.
After you’ve gone through getting a loan preapproval, finding your perfect house, having your offer accepted, to negotiating home inspection findings, it’s finally closing day!
What will happen today at your house closing?
Flex your fingers – your hand will be tired from all the signatures! Be sure to bring any documents you’ve already signed as well as the ID required by your lender. Here’s what you can expect:
- Closings historically happen at the office of the title company, attorney, or lender.
- Review and sign your loan documents. If something is different than what you expected, or you don’t understand it – ask and resolve the situation.
- Provide proof of homeowners insurance and, if applicable, inspections.
- Give a cashier’s or certified check for the down payment, closing costs, prepaid interest, taxes, or insurance. Note: these funds can also be paid via wire transfer.
- Your lender will distribute the funds accordingly.
- You may be required to set up an escrow account for property taxes and homeowners insurance (this is in addition to your mortgage payment).
What will you sign at closing?
- Deed or trust of mortgage – this puts a lien on your property as collateral for your loan.
- Promissory note – a legal agreement outlining when you will make payments to your lender and where you will send them.
- Closing disclosure – this is an itemized list of your final credits and charges, based on the terms of your final contract. Pro tip: do not sign this if it is significantly different than your Loan Estimate or the agreed upon interest rate.
Closing on a house can be a little stressful and overwhelming. There is quite a bit to do on a tight timeline. Kaniuk Law represents homebuyers in every stage – from first-time homebuyers to retirees that are downsizing. To see if we can help you, we offer a no-obligation consultation where you can talk about your situation and ask any questions you have. If that sounds like a plan to you, click here to schedule your free, no-obligation appointment or text AskRon to 21000.