What Should I Bring on Closing Day?
To make sure everything goes according to plan, you’ll need to be sure to bring a few things to your closing appointment. Your title company representative and mortgage loan officer usually provide a checklist to make sure you are prepared. WEOKIE specifically requires:
- A valid ID
- Borrowers may want to bring the latest Closing Disclosure provided by the lender. This gives them a chance to compare any changes that may take place up to the day prior to closing.
- A cashier’s check payable to the title company if funds are required to cover the down payment, closing costs, and escrows as applicable. (Some of these may also be built into the loan if you prefer.)
What will closing day look like?
- You’ll pay any remaining closing costs, as listed in your Closing Disclosure.
- The seller will sign documents to transfer property ownership.
- You will sign…
- Loan estimate information. This outlines your loan, terms, rates, and closing costs.
- Closing Disclosure. This outlines the terms and costs of your mortgage.
- Initial escrow statement. At closing, many buyers have to pay money for future taxes and insurance up front, this money sits in an escrow account during the first year of your mortgage until the mortgage company uses them to pay those bills.
- Mortgage note. This document is your promise to repay your lender and has information on what the lender can do if you don’t pay.
Before Closing Day
Trulia lists some things that you can do before closing on your home which include…
- Having a home inspection. As soon as your offer is accepted and you’re under contract to purchase your home, have a home inspector go through the house.
- Renegotiate or have the seller fix problems.
- Do a final walkthrough. Just before you go to your closing, do a final walkthrough of the property to make sure that anything that needed to be fixed, meets your expectations.
- Transfer utilities to your name. Get in touch with the utility companies well in advance of your closing day. You don’t want to be in the dark on moving day.
- Purchase homeowner’s insurance. Homeowner’s insurance protects your property against theft and damage caused by nature. And your lender will require it before closing. WEOKIE offers homeowner’s insurance through MemberHaven.
Your mortgage lender will do the following:
- Processing your loan. They will be reviewing your full application and making sure all of your financial information checks out. They may ask for additional documents during this time.
- Review your home appraisal. Your home appraisal will confirm that the value of the home is not less than the amount of your loan.
The documents will then be sent to the title company for closing.
Closing costs are the fees third parties charge when you finalize purchasing your home. These costs will include the home inspection bill, premium for homeowner’s insurance, appraisal fee, credit report charges, attorney expenses, and so on. Some of these fees will need to be paid before the actual closing day. Dave Ramsey states that on average, you’ll pay 3-4% of the purchase price of your home in closing fees. For example if your home costs $150,000, you might pay between $4,500 and $6,000 in closing costs.