Closing on a home is the last step before your new life can begin. Here are five things you need to know before the keys change hands:
1. When it happens
Your closing date is determined by you and the seller during the negotiation stage, and then confirmed by your lender. Typically, it takes 30 to 60 days from the seller accepting the offer to close on a home.
2. Who’s there
You and the seller will meet at the office of a closing agent and may be joined by your real estate agents, representatives or attorneys, as well as a representative of your lender. With a full room and large number of documents to review, the process can be lengthy, so it’s a good idea to take the day off work.
3. What happens
Everything you’ve offered, negotiated and agreed upon becomes official on closing day. You will provide a check for the amount owed on the home and the seller will sign the property over to you and hand off the keys. The title company will register the new deed or title on your behalf and the seller will receive the final proceeds from the sale.
4. What to expect
Within three days of receiving your application, your lender will issue a loan estimate outlining your approximate closing costs and cash needed to close. In addition, your lender can tell you if you need any cash reserves. Some lenders require as much as six months of mortgage payments. Most importantly, your lender will issue a closing disclosure, which you will receive at least three days before your closing. The closing disclosure will provide the final numbers, including an overview of the final loan terms, costs and payments.
5. What to bring
You must arrive at the closing with a certified or cashier’s check for the closing amount. You’ll also want a valid photo ID and plenty of time to read each document you sign carefully, checking for errors.
With the papers signed and keys in hand, all that’s left to do is celebrate your successful closing!