Putting an offer on your home and closing on your home to where you can claim possession are two very different things. The closing comes much later, after inspections, loan estimates, insurance, appraisals and other critical steps are complete. So, what should you expect at closing? Below is a list of steps that go into a successful closing.
You should first review your closing disclosure form. This will most likely be in the form of your HUD-1 settlement statement. The HUD-1, enacted under TRID (TILA-RESPA Disclosure) notifies you of all the costs involved in the loan. You will be able to know your exact mortgage payments, interest rate, loan term and any additional closing cost fees. If you have any questions, you should contact your lender. This statement will be delivered to you three days before closing so that there is enough time to look it over and ask questions. TRID also has made realtors, sellers and buyers aware that any changes can trigger a new three day period, thus making exact closing dates uncertain. Realtors should be aware of this and not overextend themselves with multiple closings back to back.
The Walk Through
It is important to note that the walk through does not allow buyers to make changes to their original inspection. After the Inspection Objection and Inspection Objection Resolution dates have passed, there can be no more changes or requests for repairs. The walk through allows buyers to go over things that have already been noted. The walk through usually takes place the day before closing and makes sure that the home is in the condition that was agreed upon in the contract. It is also important to do a walk through to ensure that the previous owners have vacated according to the contract. If there is an issue based on the condition of the home and on the contracted agreement, take it up with the seller. This could be an example of triggering a new three day waiting period under TRID.
When you get to closing, you should make sure you have proof of homeowners insurance, mortgage insurance, flood insurance if located in a flood-hazardous area, your closing disclosure and loan estimate, the contract, home inspection reports, a photo ID and anything required to approve your loan. You will also need to bring your down payment in the form of Good Funds. This can be a certified check, cashiers check or electronic transfer funds. A checkbook is also good to have on hand in case of the need to make payments for smaller fees.
When it comes to signing documents, there will be a couple of things you must complete. First, you must sign the agreement between you and the lender in regards to your mortgage agreement. You also will sign a document between you and the seller to solidify the transfer of ownership. Sellers must sign documents in the same way that they were signed on the deed and all owners (aka each individual in a marriage) must sign the document. Buyers will need to indicate how they want to take title. The common ways to take title are Sole Owner, Joint Tenancy or Tenants-In-Common. If you are a individual person buying, you would be a sole owner. If you are a couple buying a house together with the same interest and right of survivorship, you are joint tenants. And if you are two or more individuals buying with unequal shares and no right of survivorship, you are tenants in common.
Once all is said and done, at the end of closing, you will get the keys and be homeowners!
I am a real estate professional, serving Boulder and Denver, Colorado. My extensive knowledge of the market, coupled with my commitment to provide extraordinary service, has resulted in hundreds of successful transactions. Let me help you buy or sell your home.