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April 02, 2015

4 Tips for Nipping Closing Day Jitters

Homeownership

Spring Homebuying Series - Closing Day Jitters

Nervous about closing? You can nip those closing day jitters in the bud by knowing what to expect and following our 4 tips.

Where will it be, who will be there?

Usually, the closing takes place at a title company or an escrow office. The following people are typically there or are represented:

  • You and any co-borrower (such as your spouse)
  • Escrow officer
  • Closing agent
  • The seller's real estate agent
  • Your real estate agent

4 Useful Tips

The thing you'll probably remember years later is how many times you had to sign your name. These 4 tips will help keep your stress in check.

  1. Avoid feeling rushed by reading all the documents that will be sent to you prior to closing. Oftentimes, real estate agents will review your documents in detail with you before the closing date to ensure you are comfortable. Don't hesitate to ask your agent for this.
  2. Don't be afraid to ask questions about the legal terminology in closing documents. It is important that you understand everything you are signing; most homebuyers ask a lot of questions and it is expected.
  3. The documents in the mortgage process are the same for everyone, regardless of race or ethnic origin.
  4. Consider having an attorney look at the documents or attend the closing with you.

What will happen?

  • You'll present proof that you have paid the homeowners' insurance premium on your new home. The seller will show documentation of any inspections, warranties, etc.
  • The closing agent will list all the money you owe the seller. These costs may include the remainder of a down payment, prepaid taxes, etc. The closing agent will then list all the money the seller owes you, such as unpaid taxes or prepaid rent.
  • Next, you will sign a document indicating that you have accepted the mortgage loan from your lender. In some states you will sign a mortgage, and in other states you will sign a deed of trust.
  • There also will be a number of affidavits and declarations for you to sign. These legally binding documents spell out the financial obligation you are taking on and your rights as a homeowner.
  • Now that you've promised to repay your lender, your lender will transfer the money to the seller on your behalf. The seller with then sign a document called the deed, transferring ownership of the property to you.
  • The title company will prepare all the documents and make sure that they are properly recorded.

The day you close on your new home will be one of the most rewarding experiences of your life. While homeownership does come with responsibility, you'll take pride in the fact that you have a new home for you and your family to enjoy now and in the future.

For more details on closing costs, the documents that you will be signing, and more, see our webpage What to Expect at Closing.

Read other posts in our Spring Homebuying series.

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