Closing day is the culmination of the homebuying process. It’s when you close out an old chapter and open a new one, officially taking ownership of that dream home you worked so hard to find (and pay for).
It’s exciting, for sure — but also a little scary, and you probably have countless questions. What actually happens at that closing appointment? How long will it take? Is there anything you should bring with you when you go?
We’ve got you covered. Here’s everything you need to know about closing day and more:
Closing day 101
Your closing appointment is when you sign the final paperwork, pay your closing costs and down payment, and finalize the transaction. It’s generally held at your title company, mortgage lender, or attorney’s office and takes at least a couple of hours to complete (there’s a fair amount of paperwork!)
Once all is said and done, you’ll get the keys to your new property.
Here’s a breakdown of all the tasks you’ll accomplish while at your closing appointment:
- Sign all the loan documents and transaction paperwork. There’s a lot of it, and much of it is in legalese, so get ready for your eyes to glaze over. Fortunately, you’ll have someone there to answer questions (usually a title agent or closer), and you can also bring along your real estate agent, too. They can answer any questions or address any concerns you might have.
- Pay your down payment and closing costs. You’ll usually do this with a cashier’s check or via a wire transfer. If you do a wire transfer, you’ll need to wire the funds ahead of time to ensure they clear by closing day.
- Hand over insurance documentation. Your mortgage lender will require that the home is adequately insured before they’ll close on the loan. Make sure you secure your policy at least a week or two ahead of time, and bring the proof of coverage to your appointment.
- The property changes hands. Once both you and the seller have signed the paperwork, the home will officially change hands. Your title company will also register the loan and new deed with your county.
- The lender will disburse all the funds. After your wire transfer or cashier’s check has cleared, the lender will use the money to pay the various parties involved — the real estate agents, the seller, the title company, and more.
- You’ll get your keys. At the end of the appointment, as long as your money has gone through, you’ll receive the keys to your property and will be free to move in. You should receive a payment booklet in the mail (for your new loan) in the coming weeks.
As far as what to bring, you’ll need two forms of identification (usually your driver’s license and a Social Security card), as well as your proof of insurance. If you’re paying your closing costs with a cashier’s check, bring that in a sealed envelope as well.
Choose the right lender
Picking the right mortgage lender is key to a smooth closing day. Want to make sure yours goes off without a hitch? Get in touch with Premier Nationwide Lending today.
Premier Nationwide Lending is an Equal Housing Opportunity lender. Sponsored by NTFN, Inc. 6201 West Plano Parkway, Suite 100, Plano, TX 75093 | NTFN NMLS 75333.