Closing

The closing meeting will take about an hour and can be held at the title company's office, your lender's office, or a real estate attorney's office, depending on the circumstances of your home purchase. During the closing, your loan officer will be there to walk you through the paperwork and answer questions. Your loan officer will also make sure the you know the final loan amount, rate, and terms, and how much money is required for the closing costs.  A closer from the Title company will also be present to make sure monies are allocated properly and timely.

What Takes Place During the Closing?

• You'll review and sign all of your loan documents. Make sure that each document is explained clearly and that you understand the terms you're agreeing to. If something is different than what you expected or had already agreed to, don't sign until the issue is resolved to your satisfaction.
• You'll provide evidence of required homeowner's insurance and inspections.
• You'll give a certified or cashier's check to cover your down payment and closing costs.
• Your lender will distribute the funds covering your home loan amount to the closing agent.
• Your lender will set up a new escrow account so you can pay your property taxes and homeowner's insurance along with your monthly mortgage payment, if required.
• You'll receive the keys to your new home.

Documents Signed at Closing

• HUD-1 Settlement Statement - This document itemizes all of the fees associated
  with the loan.
• Truth-in-Lending Statement- This document is a full written disclosure of the terms and conditions of the mortgage, including APR and other fees.
• Note: This document states an agreement to repay
  the mortgage and it provides all of the details of the loan, such as interest rate and term.
• Deed of Trust - This document pledges a property to the lender as security for repayment of the debt.
  Our team will do our best to make closing the loan go as smoothly as possible, with no surprises. Everyone plays a vital role to ensure this.

Closing Costs

Closing costs are fees directly associated with the purchase of real estate. Typically, you can expect to pay about 3% of the total loan amount in closing costs, although that number will depend on the state you live in and the type of mortgage you choose.  If you don't want to make a large cash payment at closing, there are things that you and your loan officer can consider:

• Some lenders offer small fixed-fee or no-fee mortgages, so you'll pay little to nothing out-of-pocket at closing.
• You can ask the seller to pay your closing costs, up to certain limits.
• You can investigate down-payment assistance and closing cost assistance programs available from your lender. It's a good idea to ask about programs that may be available to you if you meet certain low- to moderate-income requirements.