What to bring to closing
It is very important to have with you all the paperwork during the closing day. You will need to carry your photo ID that matches with your legal name. On top of having the down payment, be sure to bring along your checkbook just in case some small expenses need to be settled before the keys are handed over to you.
If you are about to close a house that is just right for you, congratulation, it was never a small task to land on such a dream deal in this hot market. After you have found a perfect home, mortgage closing is the happiest, and the final step after the hardest parts of purchasing a home are over. Closing is the day when buying and financing are finalized. Also called a settlement, it is when you receive the keys to your new home after all other parties involved in the mortgage loan transition concludes all necessary tasks and sign all the required documents.
Your part in loan closing
Most of the work that you are expected to do during the D-day is to the signing of never-ending legal paperwork between you, your lender, and the seller if you are purchasing a pre-owned home. It is advisable to read and counter check all documents before you sign them. Also, never sign any documents with black spaces that are yet to be filled with information.
You, as the home buyer, will be responsible to making payments for the closing costs and escrow items. Therefore, you are expected to have at least one payment option arranged beforehand.
During the mortgage closing, expect to be issued with the following documents
Closing Disclosure: It outlines the amount and terms of the loan. It also indicates the amount you are supposed to repay the mortgage and the steps that the lender will take in case you stop making payments.
Mortgage or Deed of Trust: The deed seals the deal and gives your lender a right to reclaim your home in case you fail to honor the terms of payment as indicated in the mortgage note.
Certificate of Occupancy: This is a requirement if you are purchasing a newly constructed house so that you can move in.
What to expect from your lawyer
The job of your lawyer is to ensure that you get a good and valid property transfer. To achieve this in due time, your lawyer must be in constant communication with you, your mortgage company, and the home seller’s lawyer. Among other things, you should meet your layer a day or two before mortgage closing, provide all final closing costs, make official communication and arrange for an appointment with the seller.
During the appointment, the home buyer should complete signing all paperwork, provide the agreed down payment, and closing costs. On the last day of closing, the lawyer will conduct a more in-depth search to ensure that the title is not registered to someone else. He/she should then send the seller’s lawyer the purchase proceedings, ensure the transfer is duly registered, and make sure that the keys are released.
After both the lawyers have completed the necessary tasks, the home buyer will finally receive the keys later during the day. There is no specific time for handing over the keys as there are a number of factors that determine when the lawyers will complete all the necessary tasks.