Closing

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 What is “closing” a mortgage loan? It's the final step in the process of buying and financing a home. It's also called the “settlement.” This is when you and all the other parties in the loan transaction sign legal documents and distribute funds, after which you become responsible for the loan 

Closing on a house takes 30 to 45 days from when your loan begins processing. And an hour or so on the day you sign the final paperwork. 

At closing, you’ll carefully review and then sign all of the legal documents required for the lender to issue the mortgage itself  and transfer the ownership of the property to you. 

The loan proceeds equal to the purchase price will also be distributed to the seller.

Closing paperwork for the buyer includes:

The promissory note, committing you (promissory = promise) to repay the loan.

The mortgage, giving the lender the right to foreclose on the property if you don’t pay. (It might also be called the Deed of Trust or security instrument.)

The escrow disclosure, detailing the charges that will be incorporated into your monthly payment for taxes and insurance.

A right-to-cancel form, allowing you three business days to call off the whole deal.

There will also be a generous pile of disclosures, disclaimers and government-mandated documents to read and sign. This is very important to remember.

What do I need to bring???

Be sure to ask your lender rep and closing agent or attorney well ahead of time what you’ll need to provide at closing. At the very least, you’ll want to have:

• Your personal identification, such as a driver’s license.
• The Closing Disclosure you received three days before closing so that you can compare it with the documents you’ll sign.
• And a cashier’s check or wire transfer receipt for the funds you owe at closing.