Your Closing

Before you close on the property, you’ll take a final walkthrough to ensure everything is as it should be. If fixes were stipulated in the contract, this is the time to give them the final look-over. If everything looks good, it’s time to close!

‘Closing’ means you’re finalizing the financial details of your mortgage transaction. These days, it’s not necessary to do this in an attorney’s office or anywhere specific, as traveling notaries are quite common and will come to you. You’ll sign the paperwork and ensure all your necessary documents have been received.

If this is your first time buying a house, you will probably be surprised by the number of documents you need to sign. Even if you have purchased a home, you may have forgotten the number of documents requiring your signature. Take things slowly and make sure you understand everything that you are signing and make sure they are accurate – they are legally binding.

Here are the most common documents that you will sign:

Closing Disclosure

A Closing Disclosure includes the terms of your loan, monthly payment, and details of your closing costs. A copy of this document was sent to you at least 3 days prior to closing. It’s a good idea to bring your original copy and compare to make sure nothing substantially changed. Also compare the Closing Disclosure with the Loan Estimate and again make sure nothing substantially changed.

Loan Application

This final version of the loan application containing details about your income, assets, and liabilities.

Mortgage Note

Legal document describing the terms of your loan and is your legal obligation to pay it back. Verify that your loan amount, interest rate, and duration are all accurate.

Deed of Trust

Legal document that shows that you are using the house you’re buying as collateral. If you don’t pay, the bank can foreclose on your home.

Title

Legal document that establishes your right to the home. Once you pay off your mortgage loan, you will get the title. Until then, it remains with the bank.

Property Deed

Public document that shows the transfer of property ownership from the seller to you.