October 2, 2018

Closing On Your New Home: What To Expect

Closing Day is near, and it’s time to get prepared. Here are five items you must complete before you move into your new home:

1. Obtain Final Mortgage Approval

As you probably know, your mortgage must go through the underwriting process before you get to the closing table. The underwriter will check your credit score, review your home appraisal, and ensure your financial portfolio has stayed the same since you were pre-approved for the loan. Underwriting usually happens shortly before closing, so don’t do anything while you’re in the contract that will affect your credit score. That includes financing a car or making any other large purchases.

2. Review Your Closing Disclosure

Before you get to the closing table, thoroughly review your closing disclosure. This official document outlines your exact mortgage payments, the loan’s terms (interest rate and duration), and additional closing cost fees you’ll pay. Be sure to compare your closing disclosure with the loan estimate you received at pre-approval, and if you spot any discrepancies, contact your loan officer.

3. Complete a Final Walk-Through

You will be invited to complete a walk-through of the home within 24 hours before closing. During this time, make sure the previous owner has vacated (unless you’ve allowed a rent-back arrangement, which allows them to stay for a certain amount of time before moving). Also, double-check that the home is in the condition agreed upon in the contract. If your home inspection revealed problems that the sellers agreed to fix, make sure those repairs were made.

4. Gather Necessary Closing Documents

Make sure you have the following at the closing table:

  • Proof of homeowner’s insurance
  • Copy of your contract with the seller
  • Your home inspection reports
  • Any paperwork required to approve your loan
  • A government-issued photo ID

5. Prepare Your Money For Closing

Contact your loan officer, attorney, or title company representative to find out how much money you will need for closing.

  • If you will need less than $50K at closing, you can typically get a cashier’s check from your bank.
  • If you will need more than $50K at closing, you will need to wire funds into the title company from your bank. Please double check wiring instructions with the Title Company and/or your attorney.
  • The money you bring to closing must come from a bank account that was verified as part of your mortgage approval.

If you have questions about the closing process, contact us below or at 708-531-8388.

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