Buying a Home? What to expect at the closing.

The final step before becoming a homeowner includes a ton of documents, signatures, and some fees. Here are somethings to expect in the closing process and how long it can take till the keys are in your hands.

What documents you need at closing

At closing you will need a few things present at closing or at settlement.

Sign Legal Documents
This includes the agreement between you and the lender that are in regards to the terms and conditions of the mortgage. You will also nee d the agreement between you and the seller transferring ownership of the property. Reading through the entire document carefully will be crucial.

Closing Costs
There are some fees associated with getting a mortgage and transferring property ownership. These payments are usually with a certified or cashier’s check for the escrow company.

Closing Costs

These are expenses and fees that you must pay before becoming the legal owner of a house, condo, town home, or apartment. Generally you can expect to pay about 2 to 5 percent of the morgage loan in closing costs.

Fees & Expenses include:

  • Appraisal Fee
  • Credit Report Fee
  • Origination Fee
  • Title Search Fee
  • Underwriting Fee

Closing Day and What to Expect

There are a few key documents to sign at closing. These documents include your deed of trust, a promissory note, and the closing disclosure. Let’s go over what these are and point out what is important about them.

Loan Estimate
This document contains important information about your loans terms, interest rate and closing costs.

Initial Escrow Statement
A statement that contains any payments the lender will pay from your escrow account in the first year of your mortgage, including taxes and home insurance.

Mortgage Note:
A document that states your promise to repay the mortgage while laying out the amount of the loan and it’s term, and what would happen if you fail to make payments.

Deed of Trust or Mortgage
This is the document that puts a lien on your property as collateral for your loan. Indicating the terms of the mortgage note.

Promissory Note
A legal agreement to pay the lender with in the promised time frame and where payments will be made to.

Closing Disclosure
An itemized list of your final credits and charges for the loan you have selected. This includes the loan terms and your projected monthly payments. As well as how much fees and other costs may be.

Certificate of Occupancy
In the case that you are buying a newly constructed property, you need this legal document to move in.

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