What happens on closing day?
Once your mortgage lender has finalized underwriting and approved your mortgage application for the home you’re buying, the closing will be scheduled. A few days ahead of time, you should receive the closing documents for review. These documents will include important details on your mortgage terms, closing costs, prorated property taxes, homeowner’s association fees (if any), and prepaid homeowner’s insurance requirements. It’s not unusual to encounter confusing terms or find yourself with questions, especially as this is your first home buying experience. Don’t hesitate to ask your buyer’s agent and mortgage professional for help to determine exactly what you’ll be signing up for.
You’ll also need to visit your bank to get a cashier’s check for your down payment, closing costs, and prepaids or arrange a bank wire transfer directly to the closing agent or title company. At the actual closing, you’ll sign a big pile of documents and get they keys to your new home! It should be a pretty painless experience if you chose a good real estate agent and mortgage lender at the beginning. As long as your wire arrives at the closing attorney’s office the day before and you have your identification in hand, everything should go smoothly. Things like the transfer of utilities and shopping for homeowner’s insurance should have been completed long before. Just make sure you’ve aligned yourself with professionals that are equal to the successful accomplishments of your goals.