Talking About Loan Options

What Every New Home Buyer Needs To Know About The Home Loan Closing Process

For many new home buyers, reaching the closing process is like crossing the last and biggest hurdle to officially becoming a homeowner. To ensure you do not run into any obstacles during closing that would prevent you from being able to move into your new house, being prepared and informed before your closing date is a good idea. Follow the tips below for helping you to prepare for the day you close the deal on your home.

Closing Makes Your Home Ownership Official

Once closing is done, you are the official owner of the home you are buying. Be sure to make one last inspection of the home you are buying before closing, especially if there are any home improvements that were promised by the seller. For example, if your new home was supposed to have a termite treatment and you find it did not get it, you will have time to request that the treatment gets done before the closing date.

However, if you wait until after the deal on your home is closed, you will be the one solely responsible for providing termite treatment. Bear in mind that you need to avoid making your home inspection a few days before your closing date so the seller will have time to make improvements before the closing date.

The Fees You Will Be Responsible For Paying

When you apply for a home loan, you will receive a Good Faith Estimate packet later, within three days, telling you about the amount of fees associated with your closing. Making sure you have the money put back for these fees will ensure your closing process flows smoothly and ends with you being a happy homeowner.

Be sure to keep this documentation packet and bring it with you to closing so no one can bring hidden fees or charges to the table. Some of the closing fees home buyers are generally responsible for include those for property appraisals, the cost of running your application, taxes and loan origination.

Documents Brought To Closing By You And The Closing Agent

Most of the paperwork you will need to sign during closing is brought by the closing agent. However, there are some documents you need to bring and if you do not bring them, your closing will need to be rescheduled, a delay you do not need to wait through. The documentation you need to make sure you have with you at closing include:

  • Proof that you have purchased homeowner's insurance. You will need the policy in addition to any paperwork proving you have made the payment for securing it.

  • When you bring the money for paying closing costs, it will need to be in the form of a certified check or an electronic transfer.

Start preparing for the finalization of your mortgage by gathering the paperwork you will need for it now. Make a folder to keep all the documents in and mark it as 'closing paperwork' so you can avoid trying to get everything together in the hours before you go to the table to close the deal.