Closing Day: What to Expect
You did it! All the planning, house hunting and waiting are over. But before you get the keys to your new home and officially call it your own, you’ll face one final opponent: closing day.
The Battle of Pen and Paper
That’s right. A battle is coming. It’s a battle between you and your closing documents. But don’t worry. You’ll win! At least three business days before closing, your lender must send you a Closing Disclosure. This form lists all the final terms of your loan like closing costs, how much cash you’ll need to bring to closing, and the details of who pays and receives the money. Then there won’t be any surprises on closing day—when the house legally becomes yours.
If there are any confusing terms or conditions as you work through the paperwork, don’t be shy about asking questions. This is one of the biggest purchases you’ll ever make, and you should know exactly what you’re signing up for.
What to Bring on Closing Day
To make sure everything runs smoothly, you’ll need to bring a few things to your closing appointment. Luckily, your title company representative and mortgage loan officer will provide a checklist of everything you’ll need. This list typically includes:
- Photo identification
- Certified or cashier's check made payable to the title or closing company for closing costs
- Anyone’s name who will be on the title needs to be present for signing
What Happens on Closing Day?
If you bring everything you need on closing day, get ready for a John Hancock party! Here’s what to expect:
- You’ll pay any remaining closing costs listed in your Closing Disclosure.
- You’ll sign lots of forms—including a settlement statement listing all costs related to the home sale, a mortgage note stating your promise to repay the loan, and a mortgage or deed of trust securing the mortgage note.
- The seller will sign documents to transfer property ownership to you.
- The title company will register the new deed in your name.
It sounds simple, but be prepared for a ton of paperwork!
You Own a House!
Once you’ve survived closing day, breathe a sigh of relief. You’re officially a homeowner. Wait! What? That’s right. You own a house! Congratulations! Jump for joy! Let the confetti fall! You worked hard for this. The home-buying process may not have been easy, but having a beautiful new home to call your own is worth it in the end.