It’s Time To Make It Official!
The last step in your home-buying journey is closing on your mortgage—also referred to as settlement. After you complete the process, legal ownership will be transferred to you.
Preparing for Closing
Closing Costs: About three days before closing, you’ll receive your Closing Disclosure, which will list your closing costs. Typically these equal about 3% of your loan amount and can be paid through a wire transaction or cashier’s check.
To estimate your closing costs earlier, use our Closing Costs Calculator.
Final Walk Through: Make sure the home’s condition hasn’t changed since your last visit, and that any agreed-upon repairs have been made.
Depending on where you live, who attends your loan closing will vary. Here are some of the people who could be present:
- Buyer’s real estate agent
- Seller’s real estate agent
- Lender or lender’s representative
- Title agent
- You (the buyer)
- The seller
You’ll review and sign many documents, so take your time and read through everything. Feel free to ask questions when you have them. Some of the documents you’ll sign include:
- Closing Disclosure. An itemized list of your final credits and charges, based on the terms of your contract.
- Mortgage Note. A legal agreement to pay your lender, including when you’ll make your payments and where you will send them.
- Mortgage or Deed of Trust. This document puts a lien on your property as collateral for your loan.
- Certificate of Occupancy. If your home has been built brand new, this document shows that it complies with all building codes and other laws and is in suitable condition for occupancy.
Your down payment and any fees you’re required to pay will be collected. You may have already wired these costs to your closing or settlement company.
After you have paid your fees and signed all the documents, the house keys are yours and you’ll officially own your new home.