You have made it through the the entire process. You researched and searched and found your dream home. You made it through the loan process and inspections and the negotiations and the day has finally come. It's closing day!
Closing is the time when everything comes together. You will sit down with the processor and a large stack of documents all waiting for your review and signature. This is the time when you will typically meet the other party's to the deal and the other real estate agent. There is a lot to sign and a lot to do, but don't feel rushed this is also the time for you to review all of the documents, ask questions and have everything fully explained to you. If you don't understand something you should absolutely ask and have it explained to you so that you know everything that you agreeing to.
The entire process will take an hour or more to complete. Every closing is different and depending on your situation it may take more or less time. After the closing all of the documents that show the property has been transferred are recorded and its official the sale is completed!
Depending on your particular situation and how the property is being purchased there are several sets of documents that you can expect to see.
- Promissory Note- If you are taking out a loan to purchase the property you will sign a promissory note. This is the legal document that defines the terms of your mortgage like the length of time, interest and other important factors pertaining to the loan. This document will also explain any fees how your payments should be made and what happens if you default on the loan.
- Other Legal Affidavits-You may be required to sign legal documents in which you swear that certain statements (for example, that you are still employed or that this new home will be used as your primary residence) are true.
- Deed- This is the shortest but one of the most important documents. This is the legal document showing the legal description of the property and will be on file with the county to show the legal ownership of the property.
What do I need to bring with me?
You won't need to bring much but the few things you need are important.
- You will need to bring a cashiers check for the exact amount of the closing costs. You will know this amount several days before closing.
- Government issued ID. Drivers licence, passport or other approved identification. Check with your lender or agent for types of ID's that are acceptable.
- Other Documentation your lender requires- Depending on your situation your lender may require you to bring additional documentation. Check with your lender before the closing to see what if any other documents you need to bring.
Everything is signed now what?
Congratulations! The documents are all signed and everything is completed (except the moving in). This is when you will get the keys from the sellers or the sellers agent. Every situation is different so make sure to check with your real estate agent if anything above is different for you.