What a home buyer should expect at closing

Closing is the last and most important step in getting a mortgage. It is through the closing process that ownership of a property changes hands officially, and you become owner of your new property. People who have purchased property before certainly know what to expect, but if you are a first-time buyer, the closing process may seem daunting.

Columbia Mortgage Group is focused on providing a transparent and open closing experience to our clients, and the purpose of this article is to shed some light on what the first-time buyer can expect.

See below for some key steps in knowing what to expect at closing.

 

Understand and examine the disclosure form

At least three business days before your scheduled closing you will receive a final Disclosure. Read and understand this document closely. It details your loan terms, such as the loan amount, interest rate, monthly payment, type of loan and the amount of funds you need to close. This amount also includes a breakdown of your closing costs and down payment. This document is oftentimes referred to as a HUD-1 statement as well.

 

Prepare for Final Walkthrough

Before closing and taking possession of your new property, you should schedule a walkthrough of the property in question.

This is your opportunity to walk through the property and determine the condition prior to assuming ownership. Do not rush through this process. Check the plumbing,  electrical and be sure to bring a home inspection report with you. If the seller agreed to certain repairs, be certain that these items have been fixed.

 

Items to bring to closing

You will need to show your driver’s license or another government-issued ID. Keep in mind that the name on your ID must match your name as it will appear on the mortgage loan documents and title.

If you are bringing cash to closing, you will also need a cashier’s check for the full amount. If you are wiring funds, these funds must arrive at the title company's office before closing day. Make sure you allow enough time to transfer funds. The company handling your closing will provide wire transfer instructions. Wire transfers often take more time and need to be scheduled more carefully than a standard ACH payment.

The final part of the process is signing the paperwork allowing you to take official ownership of the property. Once this is complete, the keys will be handed over and you are the owner of new property. 

We strive to make this experience a positive one for our clients, and we would love to discuss your options regarding home loans today! 

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