You’ve saved for it, searched for it, found it, and negotiated over it. Finally, you’re ready to take possession of it – your new home. Before that can happen, however, comes the closing process.
Throughout your home search, you’ve been working closely with your real estate agent, lender, and other members of your team, and should be well-prepared for closing. Here’s what you’re likely to experience during the process – and some steps you should take before coming to the closing table.
Essentially, closing day involves the formal, legal transfer of ownership from the seller to you. Closing regulations vary from one jurisdiction to another, but two aspects of the process are usually the same no matter where you buy a home:
Throughout the home search, you’ve likely accumulated a lot of paperwork. Bring these documents with you to closing in case an issue arises and you need to produce one of them.
Your closing will most likely take place at a title company, and the following people will be represented.
Step 1. The closing agent will outline the money you owe, such as the remainder of a down payment and taxes, as well as any credits from the seller. All costs will be detailed on your settlement statement.
Step 2. You’ll sign a document indicating that you have accepted the mortgage loan from your lender.
Step 3. You will sign several affidavits and declarations, which are legally binding documents that spell out your financial obligation and rights as a homeowner.
Step 4. Your title company will transfer the money to the seller on your behalf. The seller will sign the deed, transferring ownership of the property to you.
Step 5. The title company will prepare and record all the documents.
Step 6. You’re handed the keys. Congratulations – you’re a homeowner!
Twenty-four hours before closing, you should review your settlement statement closely. If you note any large variations from the estimated costs your lender originally provided, reach out and ask questions.
MOST IMPORTANTLY…. Don’t feel rushed. Ask questions about anything you don’t understand!
Have a comment or question about this post? Email us to let us know what's on your mind.