What to Expect on Closing Day
Closing day is the final step in the home purchase process.
And it can be an overwhelming and frustrating mess if you're not ready. Many new
buyers say that their closing day was fast, but stressful. But when you already
know what will happen, you be prepared.
HUD-1 Settlement
Statement Review
One document to review at closing will be the HUD-1 Settlement Statement. However, you can and should review this document before the closing meeting, as it will list all of the services provided, along with charges and the buyer and the seller of the home. The HUD-1 can be requested from your escrow agent at least 24 hours before you attend your closing meeting.
It's crucial to review your HUD statement beforehand, because it will give you the chance to make sure nothing's missing, such as additional clauses or a different interest rate on your loan. Any unexpected items like those just mentioned may be resolvable with your lender. However, do not sign the Settlement Statement until these issues have been resolved. Should you not be able to resolve anything with your lender, you can simply walk away from the deal.
Don't Forget To Consider These
Before your closing day meeting, you should be aware that you
will need to provide proof of your identity, previous places of residences and
even name changes if you've recently got married or divorced. Having these
documents prepared before your meeting is vital.
As well, if you are paying your closing costs from a bank account that is relatively new, you may not be permitted to use a starter check, but be required to provide a cashier's check to make your payment instead.
The Meeting
Although it will depend on where you purchased your home, the
meeting will be between you and a number of others. This could include your
lawyer as well as your lender's, the sellers, both real estate professionals,
and the closing agent. The meeting is held at the closing agent's
office.
However, a formal closing meeting isn't the standard everywhere. It may be that the closing agent, attorney or escrow agent processes the needed paperwork, arranges document signings, and then processes the required funds.
During the meeting, you should make sure that every document presented to your for review and signing are accurate and explained clearly before you sign.
After The Review And Signing
Once everything has been signed, everyone at the meeting will have to agree that everything is in order. Afterward, you submit your down payment check or agree to a withdrawal from your escrow account.
If money is submitted by check, it will be passed from your lender to your closing agent. Should your monthly payments include insurance and property taxes, a new escrow account may be created for these costs.
You will receive the keys to your home after the signing of all documents and the completion of the funds transfer.
Do You Need An Attorney?
If you are just doing a simple refinance home mortgage, then you don't need a lawyer. But if this is your first closing, then you may require some additional expertise. While hiring an lawyer can cost you a lot of money, it can help to have an expert on your side when you need one.