Closing Day
Once you
are approved
for a mortgage, you have a few weeks until closing
day that can seem to last a lifetime.
During these few weeks, the underwriting process takes
place, in which the last paperwork, verifications and
inspections take place.
After all of the necessary procedures are taken care of,
it is now time for closing day, and there are a few things
to keep in mind in order to prepare for this exciting
day!
The article “Understanding the closing process,”
posted on Bankrate.com on May 1, 2006 gives some pertinent
information for closing day.
Closing day is essentially the end to this long and arduous
home
buying process, and you should be well prepared for
what the closing day procedure has in store for you.
“On closing day, all parties will sign the papers
officially sealing the deal and ownership of the property
will be transferred to you. It's your opportunity to make
any last-minute changes to the transaction.
To make this transition to ownership as smooth as possible,
you should have all of your paperwork in order that you
have undoubtedly accumulated over this process.
The author gives a list of some of the most important
documents to have ready on closing day.
“The day before closing, be sure to gather all the
paperwork you have received throughout the home-buying
process: good-faith estimate, contract, proof of title
search and insurance if necessary, flood certification,
proof of homeowners insurance and mortgage
insurance, home appraisal and inspection reports.
You might need to refer to these documents at closing.”
Most times, you are entitled a walk-through of the property
24 hours before the closing date to make sure everything
is in order.
“This is to ensure that the seller has vacated the
property and left it in the condition specified in the
sales contract. If there are any major problems, you can
ask to delay the closing or request that the seller deposit
money into an escrow account to cover the necessary repairs.”
There are many people who are present at closing including
the lender, seller, real estate agent, title company,
closing agents and any attorneys.
Although there are a lot of different people present,
you still have an important role in the process which
consists of two parts. The first is signing the legal
documents and the second is to pay the closing costs and
escrow items.
Signing the legal documents falls into two categories:
“The agreement between you and your lender regarding
the terms and conditions of the mortgage and the agreement
between you and the seller transferring ownership of the
property. Be sure to read all documents carefully before
signing them, and do not sign forms with blank lines or
spaces.”
The next thing you must do is pay any fees that are still
left over an unpaid.
“Borrowers handle the numerous fees associated with
obtaining
a mortgage and transferring property ownership in
one of two ways: they either roll them into the principal
balance of the new loan or agree to pay higher interest
rates and have their lenders foot the bill. Some buyers
may have to pay these out-of-pocket fees.”
After this is all done, the house is finally yours!
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