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You found the home of your dreams, made an offer to purchase, the sellers accepted it, you applied and were approved for your mortgage loan. All that’s left is the closing. Sure, people have told you horror stories of closings gone bad and you begin to wonder if ALL closings are meant to go bad. More often than not, closings go WELL, and here’s some tips on how to take some of the fright out of the closing process. First, a closing should be a mere formality and a time to anticipate. A closing is the culmination of all the hard work of actually buying the property, the icing on the cake, if you will. The price for the property is set, you locked in on a favorable interest rate, set a closing date and hammered out an occupancy date for you to move in. All of those things take a great deal of time, effort and patience. Make sure that all of those things have been agreed upon BEFORE you get to the closing table. Once you sit down to sign, make sure the price is the correct amount, the loan amount and interest rate is right and then listen as the closing officer gives you a brief explanation of the documents you are about to sign. Once again, the key to a smooth closing is everyone doing his or her part in advance of the big day, and that includes you as the borrower. From time to time, a mortgage loan will be approved as long as the borrower brings some "credit conditions" – minor items to further approve the loan – to the closing. A common example of a credit condition is your most recent paystub, given as proof that you are still employed at the time of closing. Make sure that you get those items and have those with you. Your loan officer will tell you if any of these things are required. Originals are always best to have. Most times the closing officer has never met you as the borrowers. Bring picture identification with you to the closing to prove your identity. The closing officer will need to copy it for not only his file but the lender’s file too. Most people have their driver’s license with them at all times and that will work just fine. Homeowner’s Insurance is a MUST. Shop around for the best rates and tell your agent that you are buying this house and you need a POLICY and PAID RECEIPT for the closing. Most agents will know exactly what you are speaking of and will prepare for you two (2) policies – one for your records and one for the closing. Make sure the coverage on the policy is at least for the amount of money you are borrowing and the effective date on the policy is for the date of closing or before. Your loan officer will also tell you the name of the lender and their address so the insurance agent can put it on the policy as well. If you need to bring money to the closing to pay your down payment and closing costs, it will need to be in certified funds. Simply, your bank will issue you an official bank check, drawing funds from your account. They verify the funds are on deposit and in turn, the check they issue is as good as cash at the closing table. Have the check made out to the closing company or yourself, but not to the lender. Additionally, DO NOT BRING CASH to the closing. Too many things can happen with cash and most of them are less than desirable. Bring your personal checkbook just in case there are last minute changes in the closing costs or adjustments to make with the sellers outside of closing. Lastly, bring a smile to the table, because all of the hard work of buying a home is behind you, and the 45 minutes to an hour you spend at the closing table should leave you with a great feeling of accomplishment. Think of all the things that made you love the home you are buying, and now that home is yours. Imagine the future in your new home, and the memories you will create there. Take pride in the fact that you made this experience the best it could be because you were well informed and found that closing was not nearly as bad as everyone says.
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