You’ve found a home and executed a contract – congratulations; you’ve done the hardest part! Now that you’re in the underwriting process, it’s time to know what to expect on the closing day. The process goes faster than you think, so the more you prepare now, the better off you’ll be when you get to the closing.
What is the Closing Day?
Closing day is when you complete the sale and money transfers hands. Lenders pay the sellers and all other interested parties from the loan funds, and you receive the keys to the home. This of course, only happens if you meet all conditions, which we’ll discuss below.
The Dos and Don’ts of Closing
We’ll start with the don’ts as they could ruin even the most secure loan approval:
- Don’t rack up your credit card debt by making large purchases, such as furniture or appliances
- Don’t change jobs at the last minute
- Don’t open new credit cards or apply for new loans
- Don’t make large deposits in your checking account
- Don’t make any of your payments late and let your credit score drop
If you make any of these mistakes, talk to your loan officer right away. We’ll help you figure out how to fix the situation so you can close on your loan.
Now let’s look at the dos:
- Do secure homeowner’s insurance and pay the first year’s premium in full. You’ll need the paid-in-full receipt at the closing.
- Do make sure you have enough time to get a certified check from your bank. You can’t pay with a personal check or cash. You should receive a Closing Disclosure at least 3 days before closing, so you’ll know exactly how much you need.
- Do walk through the home before the closing. This is your final chance to bring up any issues before you close on the home. Once the keys exchange hands, the seller is no longer responsible for any issues that occur.
Get Ready to Sign your Name a Lot
Once you get everything ready, it’s time to attend the closing. In attendance will be the loan officer, the closing agent, the sellers, and any attorneys. The closing agent will go over the paperwork, and you should have already had the Closing Disclosure and had time to discuss the final numbers.
The closing is the last chance to ask questions and go over any issues. Once you sign the mortgage and note, you’re well on your way to becoming a homeowner. The closing agent will disburse the funds and double-checked all the details and if everything checks out, you’ll be the proud owner of a new home.
The closing process seems overwhelming, but we walk you through the entire process. Once you get through underwriting, you’re well on your way to taking the keys to your new home in your possession. The closing is just a formality – a time for you to ask questions and formally sign the documents so you can make your mortgage financing and homeownership official.
