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Understanding the Closing Process

What Is Closing?

Closing is the final part of the homebuying process where you commit to your mortgage and become the legal owner of your new home. On closing day, you’ll sign your loan paperwork, and the property title will be transferred into your name.

Who Is Likely to Be Present at Closing?

  • You (the buyer)

  • Mortgage lender

  • Seller

  • Seller’s Agent

  • Title company

  • Attorneys (if applicable in your state)

  • Closing agent

Before You Close

To ensure a smooth closing, make sure you’ve taken the following steps prior to closing day:

  1. Get a home inspection.

  2. Get a homeowner’s insurance policy.

  3. Determine who your closing agent will be.

  4. Review the Closing Disclosure and make sure any errors are corrected.

  5. Ask your lender for a copy of your other closing documents so you can review them in advance. These include the promissory note and mortgage or deed of trust.

  6. Find out how much money will be needed to close and how to transfer payment.

  7. Do a final walk-through of the home to ensure all repairs have been made.

On Closing Day

The big day has finally arrived! Make sure it goes off without a hitch with these tips.

What to Bring

  • Photo ID

  • Cashier’s check or proof of wire transfer to cover your down payment and closing costs

  • Checkbook (in case there are any last minute changes)

  • Proof of homeowner’s insurance, your purchase agreement, and a copy of the home inspection

What to Expect

Be prepared for a lot of paperwork. You’ll likely be required to sign two, possibly three, copies of each document. Don’t rush it, and be sure to ask a lot of questions. If something doesn’t make sense to you, ask. If your state doesn’t require an attorney to be present, it may be a good idea to arrange for one anyway to ensure you understand everything you’re signing.

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