Understanding the Closing Process

After you've gone through the grueling mortgage process, you'll eventually reach that day everyone involved has been waiting for - the day you close. The closing process basically involves all of the parties signing the final documents and officially transferring ownership of the property to you. Closing fees are typically collected here and the transaction is essentially complete. Here's an idea of what you'll need on the day of closing and what to expect.

What You Should Bring

• Contract
• Home appraisal and inspection reports
• Good faith estimate
• Flood certification
• Homeowner's insurance and mortgage insurance if required

Main Purpose of Closing

Sign legal documents: There are several important documents you'll have to sign here, such as the transfer of ownership of the property and your mortgage terms from you lender. Read all of the documents carefully and make sure they are in line with what you had previously agreed upon. Remember that you can delay closing if necessary.

Pay closing costs and escrow: Now will be the time to pay the fees associated with closing your mortgage. The fees may already be included in your mortgage, you might have a separate loan for them, or they could be paid out of pocket.

Who'll be there?

• You, and your spouse if they're involved with the transaction
• Your attorney (not always necessary, but can help you through the process)
• The lender
• The title company's representative
• Real estate agent, if one was used
• Closing agent

After you've completed the closing process, you'll officially have ownership of the home and the mortgage process will be complete!