What to Expect At Closing
Your closing date is scheduled, which means you will soon have the keys to your new home in hand. Closing (also known as settlement) is the final step in the process that allows the transfer of ownership to occur. It is where final contracts are signed and funds are distributed. Before you head off to your closing, make sure you are prepared.
What to Bring
Your mortgage loan officer and title company representative typically provide you with a detailed list of what you need to bring. The list will be different for sellers than it will be for buyers, but there is some overlap as well.
- Each buyer needs an approved government issued photo I.D., such as a driver’s license
- Certified or cashier’s check for the closing costs that you’ll owe. In some cases funds are wired transferred to the appropriate party. If this is the case, wire instructions will be provided.
- Any outstanding documents or paperwork that you have not yet provided to the title company or mortgage loan officer (i.e., condo approval letter or originals of copies you’ve provided of other documents)
- Copies of all of the keys to the house
- Garage door openers
- Codes for keyless entry to the house or alarm system
- Certified or cashier’s check made payable to the title or closing company, if these costs are not being deducted from the sales price
- Each seller needs an approved government issued photo I.D., such as a driver’s license
Where to Go
Confirm the location of the closing with your realtor. Some mortgage lenders conduct closings at their own office. Other mortgage lenders have the title company conduct the closing, so the closing may take place at one of their offices or a mutually agreed upon locale. It’s a good idea to get a phone number in the event that you’re running late or cannot find the office or location and need to call someone.
The Closing Process
A closing agent from the title company is present to guide all of the parties through the closing process. While some parties sign documents at different times, the most common type of closing has both the sellers and the buyers of the home sitting at the closing table. Closing on a home requires a lot of signatures on many legal documents, by both the buyers and the sellers.
- For the buyer, the closing also involves signing the promissory note and mortgage documents if the purchased is financed.
- The seller then hands over the keys, garage door openers, and any other access information to the buyer, and the deal is done.
The buyer is now the proud owner of the home. The seller walks away with a check for the proceeds from sale of the home.