Are you wondering when you will finally get the keys to your new home?

Not sure what happens at the mortgage closing meeting?

You finally found the home of your dreams, the seller has accepted your offer, and now it’s time to close. What happens at closing? When do you get the keys? This article will answer those questions and more.

What is a Closing?

A closing is when the buyer becomes the legal owner of the home. It is the last step in the home purchasing process. During the closing, the buyer will sign documents, and the seller will receive the money for the purchase of the home.

* The closing process has some adjustments coming as of October 1, 2015. We will include that information as we discuss the process of a closing.

What Happens During Closing

Here is the list of possible people who may be present at the closing.

  • The buyer
  • The seller
  • The escrow or closing agent
  • Attorneys for both the buyer and the seller (The attorney may be the closing agent.)
  • Someone representing the title company
  • The mortgage lender
  • And of course, the real estate agent.

All Legal Documents Get Signed

Prior to attending the closing, you will receive a document called HUD-1. This information may differ for the Truth in Lending disclosure that was given to you around 3 days after applying for the loan.

The HUD-1 Form will show you an itemized list of the final charges. This will come at least a day before closing.

*As of October 1st, 2015, you should receive the Loan Estimate Form within 3 days of applying for the loan. You will receive the second disclosure form called Closing Disclosure Form at least 3 days prior to your closing meeting.

*As of October 1st, 2015, the new mortgage disclosure rules now require the two forms from above to look the same. This will give you plenty of time to review the document.

Other forms will be your mortgage note and the home deed.  For a look at the new forms, please see: Understand the Aug. 1 Changes to HUD-1, Closing Process.

More on What to Expect at Closing

  • You may be required to show proof of homeowners’ insurance and inspections.
  • You will need to bring a certified or cashier’s check to cover all your costs like your down payment, prepaid interest, taxes, and insurance. According Bank on America, you can estimate your closing coats to be about 3% of you total loan amount. You will know this cost a head of time.
  • The lender will give the funds that cover the home loan to the closing agent.
  • The closing agent may set up an escrow account for the buyer which will help the buyer to pay for the property taxes and the insurance.
  • The buyer will receive the title for the property and the keys.

Take Away

Closing on a house does not have to be a confusing process. If you are still a little confused on the new mortgage disclosure rules, please read Market Prepares for New Mortgage Disclosure Rules.

If you still have questions, an experienced real estate agent will be able to answer them. Please call our office. We are here to help.

248-348-7200