The closing is the final step to obtaining a mortgage for a new home or a refinance. Being prepared and knowing what to expect can help reduce stress and concern. The closing or "settlement" is when the property is legally transferred to the purchaser (or new mortgage terms settled in the case of a refinance). All legal documentation for the transaction will be signed by the borrower and any co-borrowers.
Prior to Closing
Sometimes it may be necessary to bring a cashier's check or wire funds for closing. Prior to closing, be sure to discuss this with your closing agent and/or Mortgage Originator regarding the amount needed. Ask your closing agent if there is any other documentation you need to bring to closing such as proof of insurance or driver's license.
You will meet with the closing agent or even a real estate attorney. Your real estate agent may accompany you to closing. At this time, the closing agent will review and explain all the documentation you are required to sign. Be sure to read the documents and fully understand what you are signing, being mindful of any rates, terms or conditions you anticipated. If something doesn't appear as you expected, be sure to ask. Ask as many questions as necessary – the closing agent is there to help you and questions are expected.
Important Loan Documents
The closing agent will review many documents which include:
- Mortgage Note
- Deed of Trust
- HUD-1 Statement or Closing Disclosure