What Happens on Closing Day When I Buy A House?
It’s almost closing day, and you’re very close to being a homeowner!
That means your offer was accepted, you probably got an inspection, the seller agreed to some repairs, and the house appraised for enough that the bank feels comfortable giving you a loan.
Hallelujah! Now you just have to get through the mystical, magical, all powerful “closing,” and you’re home-free. You can move in and start decorating!
What Happens During Closing?
That all sounds great, but if you haven’t bought a house before, or it’s been a long time, you might not be sure what “closing” means. You probably have questions such as these:
- What can I expect on closing day?
- How long will it take?
- What should I bring?
- And how long after closing can I move into move into my house?
We’re here to put your mind at ease about all of these items and more. Closing is the final step in the process, and we want to make it as easy and stress-free as possible for you.
Here’s how it works…
• First, your Titan Title escrow officer is working behind the scenes to make absolutely sure that everything is set for your loan to go through.
That means checking to make sure the title for your new house is clean, verifying with your lender that you’ve met all the requirements for the loan, and working with them to get the required numbers and paperwork needed for closing.
• Once the escrow officer gets the all-clear from the bank, they’ll call you to schedule an appointment and tell you how much money you’ll need to bring with you.
Please get a cashier’s check and have the bank make it out to Titan Title, LLC.
• Before you leave your residence, make sure you have your government-issued ID like a driver’s license, passport, or identification card with you.
We won’t be able to close without it.
• When you arrive at the Titan Title office, you’ll be escorted to a closing room where you’ll meet your escrow officer.
You’ve probably corresponded only by phone or email up to this point, so it will be nice to put a face to the name.
Also, the escrow officer will have a thick stack of papers that require your signature. You’ll be putting your John Hancock on A LOT of documents, especially if you’re getting a loan.
• Grab your pen, and hope your hand is in good shape!
You might want to be prepared for a little finger cramping, because you’ll be signing your full name… many, many times.
Following are some of the papers you’re likely to see, and there may be some more. Some of them won’t need your signature, but many will.
- Closing statement, also known as a HUD. This will show you the cost of the house, as well as all the other costs associated with buying the property.
- Payment info for your first mortgage payment. You’ll have the amount and options for paying.
- Copies of the loan application and closing disclosures. Lenders do everything they can to make sure you know what your payment will be, including interest rate, taxes, and insurance.
- Promissory note. This lays out the specifics of your agreement with the lender, including the interest rate, terms of your loan (30 yr. fixed, 5 year ARM, etc.), payment due dates, and penalties and fees for not adhering to the terms of the loan.
- Amortization schedule. This allows you to see when your loan will be paid off if you make all the payments on time.
- Escrow account disclosure statement. This makes sure you understand how the payments you make to the mortgage company are used. Most mortgages include an escrow account. Through it, the lender will pay the property taxes and insurance on your behalf.
- Any conditions of closing specific to you.
At this point, you can smile, breathe a big sigh of relief, and massage your hand. The escrow officer will ask you for your cashier’s check and ID, then leave the room to make copies of the documents for you. Make sure you find a safe place for them in your new home.
Congratulations are now in order, because you’ve made it through closing! The paperwork is signed, the money has exchanged hands and the property is yours!
What Do We Do After We’ve Signed Everything?
The process at this point depends on the terms of your purchase and sale agreement.
Although the sale still has to officially fund and record, in most cases you’ll be able to move in to your new house pretty fast. Sometimes you’ll even get the keys at closing.
Other times, however, you will have agreed to wait a period of time for the seller to leave the property. In those cases, you’ll most likely work with your realtor to make sure everything goes as planned. And if you need us, we’re only a phone call away.
So that’s how the closing process works when you buy a new house. We’re excited to celebrate with you!
If you have any more questions about closing, or anything else related to title and escrow services in metro Tampa Bay, please give us a call!