Closing Day On Your Home, Made Simple

If you hear the term “closing day”, understand that it refers to a bunch of things that will usually (but not always) happen right at the end of buying a home.  Laws and practices vary in different states, but here are some of the common things that might take place on your closing day:

  • You’ll receive a formal Closing Disclosure at least 3 business days in advance.
  • You’ll provide proof that you’ve arranged homeowners insurance, such as an insurance binder document or a receipt for the premium.
  • Someone – usually the closing agent – will provide a list and documentation of what’s still owed:
    • Down payment remaining
    • Tax prepayment
    • Fees
  • They will also detail any costs owed by the sellers, like:
    • Taxes to be paid
    • Prepaid rent

Sellers may also have to provide documentation, like proof of inspection or warranties.

Once you are clear on these, you will probably sign the mortgage.  The mortgage gives the lender rights to the house; if you don’t make the payments, they have rights to recover the loan and interest by selling.

You will probably also sign a mortgage note, which is your promise to repay the loan.

You will end up with title to the house, usually in the form of a signed deed. You’ll pay all of the closing costs, and receive a settlement statement covering what was paid.

The mortgage and the deed will be “recorded” — literally, put in government records such as a state Registry of Deeds.

And now you’ll be a homeowner. Don’t forget the keys!

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