Closing Day Preparations Closing Day -- the Final Steps
You've found your home. You've signed your contract. Inspections are finished. Repairs are done. It's the day you've waited for…the day you actually buy and own your new home. You start the process with a final walk-through of your new home, making sure the home's condition is exactly as it should be. Now it's time to go to the closing. (This final meeting is called the closing, because you and the seller are closing, or finishing, the sales transaction. It is also referred to as the settlement in some parts of the country.) At the closing you will finalize your loan, your mortgage will be issued, and you will be given title - and keys - to your new home. We believe that the best closings are ones that come with no surprises. That's why we want to make sure you have all the details you need to ensure a successful experience every step along the way to closing: On closing day, the seller officially signs the house over to you. And, because you chose to work with a small, local community bank through this website, the process has been easy! You have been spared the time, aggravation and hassle so many people go through to get a loan. Your closing day is one to be remembered with joy! Setting the Closing Date
An estimated closing date is usually specified in your sales contract. The final date will be chosen after your mortgage loan application is approved and you sign the commitment letter. Typically, your real estate sales professional, your lender, and your closing agent coordinate the setting of the closing date. While Your Closing Date May Change, Make Sure It Occurs: - On or before the date on your sales contract
- Prior to the date your loan commitment letter expires
- While your interest rate lock-in remains valid (if applicable)
You should ask your closing agent for a statement that lists the date, place, time, and items you need to bring to the closing meeting. At least one business day before the closing meeting, your closing agent should have you review a copy of the HUD-1 Settlement Statement. This document breaks down the items and the costs that both you (the buyer) and the seller will pay at closing. Be sure to bring your funds in to the closing in the form of a certified check or cashier's check. Closing Costs
Closing costs may be part of your mortgage or they may be paid by the seller or the builder of the home. One way to break down the numerous costs associated with your closing is to place them in three categories: 1)Seller-Versus-Buyer Costs, 2) Mortgage-Related Costs, and 3) Government-Imposed Costs. Seller-Versus-Buyer Costs - These costs are often negotiable between the buyer and seller. However, make sure that any agreement regarding any of these costs is specified in the sales contract. These items can include: - Repair costs
- Home warranties
- Mortgage-related costs
- Realtor fees
- Bonuses or credits
Mortgage-Related Costs - These can vary, but the following are typically paid by or at closing: - Loan origination fee
- Loan discount points
- Appraisal fee
- Credit report fee
- Assumption fee
- Prepaid interest
- Escrow accounts
Government-Imposed Costs - These also vary according to state and local mandates, and are paid at closing: - City/county taxes/stamps
- State taxes/stamps
- Intangible taxes
- Recording fees
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