Take heart, home buyers! Closing on a home is not as difficult as it first seems and there are professionals to help you along the way.

Few purchases compare with the excitement of buying a home. Fewer still compare with the complexity. While a lot happens during the home closing process, homebuyers get lots of guidance along the way from their lender and other professionals—and it’s really not difficult. Here’s what to expect when you sign the papers to finalize the sale of a home and make it yours.

What happens before closing on home

Between the time when a seller accepts your offer and you close on the deal (usually 30 to 60 days), several things need to happen.

Most home purchase offers include an inspection contingency, so you’ll need to get a home inspection and review the report. If the report is satisfactory, you’ll remove the contingency from the offer and proceed with the deal. The same applies if you have a pest inspection contingency.

Some home buyers choose to have a real estate lawyer review documents like the contract of sale, title and, if applicable, easements. They can also help vet the stability and effectiveness of an HOA.

Before closing, you’ll need to:

• Buy homeowners insurance and provide proof of coverage to your lender.
• Get title insurance (this protects you and the lender if someone later sues and says they have a claim to the property).
• Determine how you’ll pay for closing costs (either in cash or by rolling them into your home loan).

For newly-constructed homes, a certificate of occupancy issued by the local building or zoning office is also required.

Three business days before closing, your lender will provide a copy of your closing documents. Review everything, including the spelling of names, addresses, interest rates, monthly payments, fees and other costs. If there are errors or you don’t understand something, talk to your lender right away.

Just before the closing (usually within 24 hours prior) buyers do a final walk-through of the property. This is not a building inspection. The purpose of the walk-through is to verify there’s no damage since the buyer made their offer and that any repairs the seller agreed to make have been done.

Does this seem like a lot do before closing? Don’t be overwhelmed. Your mortgage loan officer, real estate agent and title company will help navigate the process to get everything done on time. Closing on home sales is routine for them and they’ll make it as easy as possible for you.

What happens on closing day?

Closing day is when the home purchase is completed, typically at a title company office.

Bring the following to your appointment for closing:

• Photo ID
• Cashier’s or certified check for closing costs and escrow, if needed
• Your closing disclosure; you’ll use it to ensure the final paperwork is correct

When financing the purchase of a home you’ll sign a series of documents that are legally binding and detail your financial obligations and rights. In addition to finalizing your home loan, you’ll sign documents making you the owner of record and get filed with local agencies that assess and collect property taxes.

After signing is complete you get the keys to your new home. Congratulations!

 

All loans subject to approval. Rates, terms, and conditions are subject to change may vary based on credit worthiness, qualifications, and collateral conditions.