When it comes to the home-buying process, closing day is the big finale – the day the house officially becomes yours. At this point, you’ve already completed the home inspection and appraisal. You’ve also submitted your financials to your lender and received the their approval to schedule the loan closing.
But before you celebrate, there are still a few “I’s” to dot, “T’s” to cross, and a little – OK, a lot – of paperwork to sign. Here’s a step-by-step checklist of how to prepare for closing day.
Before your closing appointment
Closing is typically set for 30 to 45 days after your offer is accepted. This gives you time to prepare.
1. Clear your schedule: Plan to spend at least two hours at closing. You don’t want to rush through the paperwork for what may be one of the biggest purchases of your life.
2. Do a final walk-through: This is your opportunity to view the property one more time before closing to make sure the home is still in good condition. You'll also want to double check that any last-minute repairs you’ve negotiated with the seller have been made. Schedule the walk-through a few hours or up to a few days before closing.
3. Review the closing disclosure: By law, a lender must provide the buyer with a closing disclosure at least three business days before the closing. Take time to review the document, as it spells out your loan terms, projected monthly payments, fees and other costs you’ll pay at closing.
4. Gather the necessary documents: The closing agent will have all the necessary paperwork ready for closing. Your job is to provide proof of identification. You – and anyone who may be purchasing the home with you – need to prove you are who you say you are. This can be done with a driver’s license or passport.
5. Stop by the bank: If you plan to pay for your home by a cashier’s check you’ll need to stop by the bank. Remember to bring the exact check amount, the recipient’s name and your photo ID. You can also arrange to send a wire transfer to the title company or escrow agent. The final check amount may include fees for the underwriter, appraisal, home inspection, title search and loan origination. On average, a buyer should expect to pay two to five percent of the home’s value in closing costs.
At the closing appointment
The day has finally arrived, and you’ve set aside enough time to enjoy the experience. Here's what you can expect at the closing meeting.
6. Meet the team: In addition to your real estate agent, other people will be present at closing. They can include the seller, the seller's agent, escrow/closing agent, an attorney, a representative from the title company and the mortgage lender.
7. Ask questions: Take your time, make sure you understand what you’re signing and don’t be afraid to ask clarifying questions. When is my first mortgage payment due? Where do I send my payment? What happens if I’m late on a payment? No question is too simple.
8. Sign the papers: This is it – the moment you’ve been waiting for! At closing, you’ll sign the paperwork that officially allows you to call the home yours. Make sure to read every document put in front of you. The documents will vary depending on where you live and the specifics of your home, but generally, they include the closing disclosure, promissory note, mortgage or deed of trust, and warranty deed or title.
After the appointment
Load up the moving truck, because the house is officially yours.
9. Celebrate: Whether this is your first home or last home, buying a house is a big achievement and a major life milestone. Go ahead and celebrate and enjoy your next adventure!
10. Find a safe place to keep the closing documents: After all is said and done, you’ll likely have to refer to your closing documents on occasion. Keep them stored in a safe place, such as a fire- and water-proof safe, where they’ll be easily accessible.
Learn more about how to navigate the home buying process.
Equal Housing Lender