In Closing . . . You’ve found the perfect property
You’ve found the perfect property. You’ve bid and won. You’ve turned to your lender, applied for a mortgage and been approved. All that’s left is the mortgage closing. With that one act, you will finally be able to call this house your home. But what exactly does a mortgage closing involve?
The closing process begins as soon as you’ve been approved for the loan. The lender transfers your account to the closing and funding department who then notifies the broker and closing attorney. At that point, a time is set up for you and all other parties to meet, sign the final documents and pay the closing costs. You should come to this appointment pen in hand, cashier’s check in pocket.
The documents you will have to review and possibly sign include the settlement statement, which is prepared by the closing agent, the truth-in-lending statement if there have been any changes made since you initially received this form in the application process, the mortgage note and the actual mortgage or deed of trust itself. There will be additional documents as well that detail penalties from the lender and penalties on a state and federal level should you violate the terms of the mortgage. All papers should be read carefully before being signed.
Then, break out the check. You will have closing costs, which may vary slightly depending on the lender and the terms of the loan. You should receive notification of what must be paid upon closing prior to the meeting. This will enable you to be prepared and ensure that all funds are available for use.
Once all transactions have been completed, the closing attorney has the lender examine all documents one final time and then takes it to the country recorder’s office to be recorded. From that moment you have a mortgage . . . and a home.
