It’s no secret that the closing is the most important, and exciting, step in the homebuying process. It is when purchasing your dream home becomes a legal commitment. With that in mind, a buyer should never walk into the closing without preparing first. A good place to begin is to research what happens at a closing and who is typically involved. There are plenty of reliable resources online, including our last blog post to give you an idea of what to expect.
Next, you should be aware of who is conducting the closing, where it is occurring, and at what time. This may seem like an unnecessary step, but ensuring you know the details ahead of time can save you a headache on closing day. It is also important to note that all you will need to bring on the day of closing is a form of ID, payment and, if applicable, your spouse.
Even though you have already done research on your own, it is beneficial to contact the person conducting the closing and ask what is expected from the buyer. Mortgage closings vary by state, so it is possible the information you found online doesn’t pertain to your state. Remember, too much information is always better than too little.
After getting an idea of what the actual closing looks like and what is expected of you, you should request the Closing Disclosure. Legally, you have to receive it three days before closing, or the date will have to be moved back. Review the documents and write down any questions you may have. This is likely the biggest financial commitment you’ve made thus far so it is important to fully understand what you are getting yourself into.
While you are reviewing the Closing Disclosure, make sure to compare it to your most recent Loan Estimate. By law, only certain costs can change. After comparing those, make sure to review all of the other documents for other errors, such as:
- Are all instances of your personal information correct?
- What happens if you don’t pay back the loan?
- Do all of the key numbers (loan amount, monthly payment, interest rate) match in all of the documents?
You would be surprised how many mortgages are delayed due to small mistakes such as misspellings.
Lastly, you need to arrange for payment, whether it be a direct wire transfer or cashier’s check.
You are finally prepared for your closing! Make sure to take all of the checklists, questions, and payment to the actual closing. Have additional questions? Please, do not hesitate to reach out to Brent at Mortgage Specialists with questions.