Closing is the last step in the home-buying process, where you finalize the purchase and become the legal owner of the property. Here's a comprehensive guide on what to expect during this crucial phase:
- Select a Closing Agent or Attorney:
Your real estate agent or lender will often help you choose a closing agent or attorney to facilitate the transaction.
- Receive a Closing Disclosure:
Prior to closing, you will receive a Closing Disclosure (CD) from your lender. This document outlines all the costs associated with the loan, including the down payment, closing costs, and escrow fees.
- Review the CD:
Carefully review the Closing Disclosure to ensure that all details are accurate and that there are no surprises. Compare it with the Loan Estimate you received earlier in the process.
- Secure Funds for Closing:
Ensure you have the necessary funds ready for closing. This may include the down payment and closing costs, which are typically paid by certified check, wire transfer, or electronic funds transfer (EFT).
- Home Insurance:
Make sure you have homeowners insurance in place, and provide proof of insurance to the lender.
- Final Walkthrough:
Conduct a final walkthrough of the property just before closing to confirm that it's in the condition specified in the contract and that any agreed-upon repairs have been completed.
- Bring Identification and Documents:
On the day of closing, bring a government-issued photo ID and any required documents, such as your social security number or proof of residency.
- Sign Closing Documents:
At the closing, you'll sign various legal documents, including the mortgage note, deed of trust, and the settlement statement. Be prepared to ask questions if you don't understand any part of the paperwork.
- Funds Transfer:
Your lender will provide the funds for the purchase to the closing agent or attorney, who will then distribute them accordingly.
- Title Transfer:
The seller will transfer the title of the property to you, and you'll receive a copy of the deed.
- Closing Costs Payment:
Pay the closing costs, which typically include fees for the appraisal, title search, attorney fees, and other miscellaneous costs.
- Recording the Deed:
The deed is recorded with the appropriate county or municipal office, officially transferring ownership to you.
- Receive the Keys:
Once all documents are signed, funds are transferred, and the deed is recorded, you'll receive the keys to your new home.
- Celebrate Your New Home:
Congratulations, you're now a homeowner! Celebrate this milestone and start moving into your new property.
Remember that closing procedures may vary by location and the specific details of your transaction. It's essential to work closely with your real estate agent, lender, and closing agent or attorney to ensure a smooth and successful closing. If you have any questions or concerns during this phase, don't hesitate to seek clarification from your real estate professionals.