Closing Process

Congratulations! You've found your dream home and secured a mortgage that fits your budget. Now comes the closing process, the final step before you officially become a homeowner. While the paperwork and unfamiliar terms might seem daunting, our team at 14 Days To Close is here to guide you through every step of the way.

The closing process is a culmination of all the hard work you've put into finding the perfect home and securing financing. Having an experienced mortgage lender by your side can make all the difference. We handle numerous closings every month, and our experience allows us to anticipate potential issues and ensure a smooth closing for you.

What to Expect at Closing

The closing is typically held at a title company's office and involves signing a variety of documents that officially transfer ownership of the property to you. Here's what you can expect:

Reviewing the final loan documents: We'll carefully review the loan agreement with you to ensure all the terms and conditions are accurate.
Signing the paperwork: Once you understand everything, you'll be asked to sign the loan documents and closing paperwork.
Funding the loan: We'll handle the transfer of funds to cover the purchase price and closing costs.
Receiving the keys: Congratulations! You're now a homeowner!

Potential Bumps in the Road: Prior-to-Closing Conditions

Even with preapproval, there can be delays caused by seemingly minor details. Here are some common culprits:

Updated Documents: Lenders may require recent pay stubs and financial statements to ensure your financial situation hasn't changed significantly since your initial application.
Credit Inquiries: New credit lines or loans can impact your debt-to-income ratio and affect your loan eligibility. Be transparent with your lender about any anticipated credit inquiries.
Employment Verification: Your lender will double-check your employment status to ensure continued stability. If you have upcoming planned leave, be sure to communicate this upfront to avoid last-minute scrambling.
Closing Funds: Lenders need to verify the source of your down payment and closing costs. This might include ensuring funds from retirement accounts or gifted money meet specific requirements.
Title and Judgment Searches: These searches can uncover outstanding issues with the property title, such as liens or judgments. Your team will work to resolve these before closing.
Homeowners and Flood Insurance: Lenders require proof of adequate homeowners and, in some cases, flood insurance coverage before finalizing the loan.

What to Bring to Closing

While the mountains of paperwork might seem daunting, the items you actually need to bring to closing are fairly straightforward:

Certified Check for Closing Costs: Your agent and loan officer will provide a detailed breakdown of these costs, which can include origination fees, appraisal fees, title insurance, and prorated taxes.
Proof of Identification: A government-issued ID, such as a driver's license or passport, is required for identification purposes.

Closing FAQs

Can the closing date impact costs?

For conventional loans, closing early in the month can save a few dollars in interest. However, avoid Fridays to avoid weekend interest charges.

What if I have questions about the closing documents?

Don't hesitate to ask! We're here to explain everything in detail.