The Closing

What Happens When You Close on the Purchase of Your Home?

This question comes up a lot but not necessarily in this direct manner.  It usually comes up in bits and pieces and it is important to address it as early in the sales process and then continue to provide updates as the sales process moves toward the closing.

Closing is the final step in the purchase of your home and it is the culmination of many steps that will take place up until that day.  There will be multiple parties that will be involved in this process which can include you the purchaser, your agent, the seller, their agent, your lender and their staff of underwriters, the appraiser and the attorney you choose to close on the purchase of the home.  This process usually will take approximately four to six weeks.  During that time you will have been pre-qualified or pre-approved by your lender.  A home will have been chosen and a contract negotiated.  You will have signed an application with your lender and they will have had you sign certain documents required by federal law.  These documents help protect your rights and the rights of parties involved.  You will need to thoroughly review and understand these documents in order to know your mortgage’s terms and conditions.  Some common documents that you will encounter include the closing disclosure for the final terms of your loan; the promissory note which tells you what you are agreeing to, the total you owe, the interest rate on your loan, when the payment is due, where it is due; there will be state and local government-mandated documents regarding your rights; and then the security instrument or mortgage which confirms those rights and responsibilities as a borrower.

Finally your real estate attorney will meet with you to review these documents and you will sign each one as it is explained.  Finally a prepared deed will be signed by the seller and recorded at the local county courthouse and you will have taken ownership of your home.