Closing is the final step in getting a mortgage. This is when you sign the documents to take ownership of a property and receive your keys. Buyers who have gone through the process know what to expect, but if you are a first-time homebuyer, this might be foreign territory.
Atlantic Coast Mortgage is committed to helping our clients understand how closing works from start to finish. The actual process of closing can take about an hour, but you will need to do a few things beforehand.
To help you prepare for the finish line, here is what you can expect at closing.
No less than three business days before your scheduled closing, you will receive a final Closing Disclosure. Read this document closely. It provides a detailed explanation of your loan terms, such as the loan amount, interest rate, monthly payment, type of loan and the amount of funds you need to close. This amount includes your closing costs and down payment.
This document is different from the Loan Estimate you received earlier in the process. The Loan Estimate was an “estimate” of what you could expect to pay. The figures on the Closing Disclosure are your actual loan terms. This way, you avoid any surprises on closing day.
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Before closing and taking possession of your new property, you will schedule a walkthrough of the property you are purchasing. This typically takes place one or two days prior to closing after the seller vacates the home.
This is your final opportunity to walk through the home and check its condition before taking ownership. Do not rush this process. Check every room, the plumbing, the electrical and bring your home inspection report with you. If the seller agreed to certain repairs, make sure these items have been fixed.
For a smooth closing, arrive on closing day with the appropriate documentation. You will need to show your driver’s license or another government-issued ID. Keep in mind that the name on your ID must match your name as it will appear on the mortgage loan and the title.
If you are bringing cash to closing, you will also need a cashier’s check for the full amount. Contact your loan officer or the closing agent for information on who to make the check out to. If you are wire transferring funds, these funds must arrive at the closing agent’s office prior to closing day. Make sure you allow enough time to transfer funds. The company handling your closing will provide wire transfer instructions.
The final step of the process is signing and initialing a stack of paperwork and taking ownership of the property. The closing agent will give you a copy of the documents. Once everything is complete, you will receive the keys to your new home.
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