What to Expect When You Close on a Home Loan
Closing day is deemed one of the most important days of the purchasing process. Everyone wishes it to be pleasant and hassle-free.
A buyer’s active participation is necessary to ensure everything goes according to plan. A few preliminary steps given below can provide help in this regard.
Preliminary Document Analysis
Documents such as contracts, evidence of mortgage and homeowners insurance, closing disclosures and inspection reports are usually available for buyers in advance. They should go through these documents in detail to ensure that there are no ambiguities.
The Walk-Through
Buyers are usually permitted to undertake a final walk-through examination of a home. This walk-through is provided at least 24 hours before the closing day and buyers are expected to point out anything that deviates from the contract that a buyer intends to sign. It also includes potential damages or repairs.
Closing Costs
Buyers are expected to pay these costs when closing a home loan. The particular closing cost may vary and include expenses such as notary, attorney and origination fees. Moreover, the explicit closing costs are mentioned in the closing disclosure. Here at First South Financial, we have several mortgage loan options with absolutely no points, fees, or closing costs!
The buyer should have money available for closing costs before the closing day of a home loan, which is typically when this payment is made.
Who Is Going to Be There?
The closing day procedures may differ by geographic locations, but the following people are generally present on closing day:
- A notary public
- A closing agent
- The buyers
- The lender’s representative
- The seller or seller’s representative
- The real estate professionals (from the buyer’s and the seller’s side)
It is the responsibility of a closing agent to administer all of the procedures and make sure that the process runs smoothly and transparently.
Which Documents Are Necessary?
The lending professionals involved will provide the list of all the documents required on closing day. Here's a list of the most common ones and what they provide:
- Closing Disclosure: A document containing all details regarding the monthly payments, closing costs, mortgage loan, and loan terms. Buyers are expected to receive it a few days before closing day.
- Deed of Trust: A document that provides the lender with a claim against the title in case a buyer fails to fulfill commitments.
- Certificate of Occupancy: A legal and official paper for buyers moving to a newly-built home. This would not apply to purchasing an existing home.
- Mortgage Note: Contains the terms and conditions of a loan in addition to the steps that lenders can take in case of failure of payment.
The buyer should be informed in advance whether the documents are to be signed personally or electronically.
First South Financial's Mortgage Department offers a full line of mortgage loans along with friendly and professional staff to help you will your lending needs. They can be reached at
901.380.7530 or at
mortgages@firstsouth.com.
