Pro tip: Make sure you set several hours or even half a day aside for your appointment on the day of closing. There will be lots of paperwork to review and sign, and you’ll want to make sure you can take your time. A combination of the following people may also be present at your loan closing:
- Attorneys (yours or the lender’s)
- Seller’s real estate agent
- The loan closing agent
- Title company representative
- Your loan officer
- Your mortgage lender
- Your real estate or buyer’s agent
Once everyone gets settled in, the real work begins: You’ll need to review each of the following documents carefully, then sign
- Closing disclosure: An itemized list of the terms and costs of your mortgage
- Escrow statement: At closing, many buyers provide funds for future taxes and insurance. Those funds sit in a third-party escrow account until the lender or loan servicer taps into them to pay the fees on the borrower’s behalf
- Mortgage note: A legal agreement to pay the lender
- Mortgage or deed of trust: A document that puts a lien on your property as collateral for your loan so the lender can make claims against the home if you don’t follow through with the agreed-upon mortgage terms
Once you’ve signed all the paperwork, boom – you’re done! Congrats on officially becoming a homeowner. And don’t forget: Garbage day is every Thursday.
Sources: consumerfinance.gov, trulia.com
