Closing your home in 4 simple steps.
Closing on a house is the most rewarding part of the home buying process. Here’s a guide to help you prepare you for the day of closing.
How Long Does It Take To Close?
Closing day, the day you sign your final paperwork, lasts about 1 to 1.5 hours
Step 1 : Understanding Your Documents
The closing documents lay out, in detail, all the important information of your loan. That includes:
- Loan term, loan amount and interest rate
- Estimated monthly mortgage payment
- Closing costs, which include origination, underwriting and government fees
- Amount of money you’ll need to bring to closing, also known as cash to close
- Loan disclosures
Title Documents
During the closing process, a title company, working in the interest of you and your lender, will perform a title search to ensure the seller owns the right to the property and confirm there are no existing liens on the home.
Step 2 : Selecting A Homeowners Insurance Plan
Mortgage lenders require buyers to get a homeowners insurance plan for the new home and show proof of this insurance just before or during closing.
Step 3 : Preparing Your Finances For Closing Day
Your Closing Disclosure should spell out what you’ll need to pay on closing day, but here’s a quick rundown of various expenses that may be paid by you, your lender or the seller.
Step 4 : Planning What To Bring To The Table
Most of the closing documents you’ll review and sign on closing day will be provided to you at closing. There are some items you’ll need to bring on closing day. To make sure you don’t forget anything on such and exciting day, create a list and check off your items as you pack them. Start your list with these required items:
- A form of identification, like a driver’s license, passport or government-issued photo ID
- A certified or cashier’s check in the amount of closing costs due or proof of a wire transfer (cash and personal checks are not usually accepted)
- Your Closing Disclosure to compare to final paperwork
- Proof of your homeowners insurance
