What to Expect On Closing Day: A Step-By-Step Process

Closing day is a big, exciting day but one that can be very overwhelming if you’re not prepared. This is the day when papers will be signed to officially seal the deal to announce you as the owner of your new home. This will also be your last chance to make any amendments to the transaction. For this process to go as well as possible, here are some tips on what you can expect on closing day.

Prepare the Day Before

Over the entire home buying process, you’ll have acquired quite a few documents. Bring all of these with you to closing day. Such documents may include your loan estimate, proof of insurance and mortgage insurance, home appraisal, inspection reports, and more. Even if you think something won’t be needed, bring it all anyways in case you will need to refer to them. You will also likely take a walk-through inspection of the home to make sure it is in proper condition before the sale is made final. If you see any major problems with the home, this would be the time to mention them to negotiate fixes.

What to Bring to Closing

Again, bring all your paperwork to closing day. You’ll also need to bring your photo ID (make sure it matches your legal name in the case of being a newlywed) as well as your down payment. Your disclosure form will tell you how much you owe in remaining closing costs and down payment. Ask before closing the best way to pay for these expenses. In some cases, wiring money will be sufficient while in others you may need to bring a cashier’s check. Also be sure to bring along your personal checkbook in case there are any smaller expenses that need to be paid for.

Your Part of Closing Day

A lot of your job on closing day will consist of signing neverending legal documents between you and your lender concerning the mortgage and between you and the seller if you are buying a pre-owned home. It’s wise to read everything before you sign and never sign anything that has blank spaces for info not yet included. You’ll also be responsible for paying closing costs and escrow items, which is why you’ll need to have payment options arranged beforehand.

Who Will Be There

Every case can always be different, but here are the people you can typically expect to see on closing day:

• Closing agent (working for the lender or the title company)
• Attorney (the closing agent might be an attorney representing you or the lender. Both sides may have attorneys. It’s always a good idea to have an attorney present who represents you and only you.)
• Title company representative
• Home seller
• Seller’s real estate agent
• Lender (the mortgagee)

Closing Documents

You will receive the following important documents:

Closing Disclosure- provides details of the mortgage loan, including the loan terms, estimated monthly payments and closing costs. You are not supposed to receive this for the first time at the closing table; the lender is required to give it to you at least three business days before you close on the loan. During this period, you are encouraged to compare the Loan Estimate with the Closing Disclosure.

Mortgage Note– states your promise to repay the mortgage and indicates the amount and terms of the loan and what the lender can do if you fail to make payments.

Mortgage or Deed of Trust– secures the note and gives your lender a claim against the home if you fail to live up to the terms of the mortgage note.

Certificate of Occupancy- required if you are buying a newly constructed house in order to move in.

Once all the fees and costs have been paid and all documents signed, you will receive the keys to your home and, unless otherwise agreed upon, access to move into your new home!