Closing

Closing on Your New Home

You’re finally in the home stretch. Closing is the last step, the official transfer of the property from the seller to you. Once it’s completed, you’ll be the proud owner of your new home. In the meantime, here’s what you need to know to prepare for your closing.

WHAT TO BRING

A certified check (payable to yourself) for the amount specified in your most recent Good Faith Estimate received from your loan officer or lender
Your personal checkbook to cover any extra charges, if necessary
Your new homeowner’s insurance binder, with proof of one year’s payment
A photo ID
A list of your address for the past 10 years

WHAT TO EXPECT

Contrary to stories you may have heard, the typical closing proceeds without complications and only lasts an hour or so. It usually takes place at the office of the title company. Primarily, you’ll sign numerous papers and documents, all of which will be explained to you along the way. You’ll finalize your mortgage, pay what’s due and get the keys to your new home!

WHAT YOU’LL PAY

Your Good Faith Estimate outlines the various expenses you’ll incur at the closing. Basically, you’ll need a certified or cashier’s check that covers:

the balance of your down payment (subtract the earnest money you paid when your offer was accepted on the home)
fees for other services including loan origination fees, tax and insurance escrows, recording fees, transfer taxes and possibly your owner’s title policy

At the closing, you will receive a formal Settlement Statement that details and documents the actual charges. (Tip: Keep this document for tax purposes when you sell your home)