Closing on a mortgage can be one of the most anxious and confusing times if you’re not prepared. Everything you’ve done so far, starting with the property search to the loan approval, reaches its final stage. It’s time to sign all the legal and financial documents to formalize the purchase of your home. Here’s a guide to everything you need to know to make your mortgage closing as clear and straightforward as possible.
1. Review loan documents
Before closing, you will receive a package of documents that you must review very carefully. The most important is the Loan Disclosure Form (CD), which
shows a detailed breakdown of the costs associated with your mortgage, such as closing fees, taxes, and other expenses. Make sure you understand each charge and ask questions if something is unclear. Lenders must give you this document at least three days before the closing date.
2. Check Financial Information
At this stage, verify that all financial information is correct, including the amount of the approved loan, the interest rate, the length of the loan, the mortgage balance, and any last-minute adjustments to the interest rate or payment. You should also confirm the down payment you’ve agreed to and any adjustments to closing costs.
3. Do a final inspection
Although it is not mandatory, we recommend that you do a final inspection of the house before the final signing. In this inspection you can ensure that the property is in the agreed condition and that there are no major changes that could affect its value or your decision to go ahead with the purchase.
4. Sign legal documents
During closing, you’ll sign several documents, including the loan agreement, property deeds, and other papers related to the transfer of ownership. Some of the most important documents are:
a. The mortgage loan agreement: An agreement that outlines the terms and conditions of your loan.
b. The deed to the property: a legal document that officially transfers the seller’s home to you.
5. Delivery of the down payment and closing costs
In most cases, you will need to submit the down payment and other closing costs at this time. Closing costs may include loan origination fees, appraisal fees, title insurance, taxes, and other administrative charges. Some people choose to finance closing costs through their loan, but most prefer to pay them separately to avoid an additional amount to debt.
6. Get the deed
Once everything is signed and the lender has processed the transfer of funds, you will receive the keys to your new home and a copy of the deed. The deed is the official document that proves that you are now the legal owner of the property. This is the final step and means that the house is yours.
By following this guide you can have a successful mortgage closing without much stress. If you have any questions about this process or need more information, please contact us.
