5 things to know about closing on a home

Was your offer accepted on your dream home? Congratulations. Now what?

Here are five things you need to know about closing.

1.     When is closing?

Your closing date is determined by you and the seller during the negotiation stage, and then confirmed by your lender. It typically takes 30 to 60 days to close on a home after the seller accepts the offer.

2.     Who will be there?

You and the seller will meet at the office of a closing agent. You may be joined by your real estate agents, representatives or attorneys, and a representative of your lender.

3.     What happens during closing?

Everything you agreed on with the seller becomes official. You will provide a check for the amount owed on the home. The seller will sign the property over to you and give you the keys.

The title company will register the new deed or title on your behalf. The seller will receive the final proceeds from the sale.

4.     What should I expect before then?

Within three days of submitting your loan application, you’ll receive a loan estimate. This will outline your approximate closing costs and cash needed to close.

Your lender will let you know if you need any additional cash reserves—some lenders require as much as six months of mortgage payments.

At least three days before your closing, your lender will issue a closing disclosure. This outlines your final numbers—including final loan terms, costs, and payments.

5.     What should I bring to closing?

A certified or cashier’s check for the closing amount. Also bring a valid photo ID.

The process can be lengthy and there will be lots of documents to review. Plan ahead and schedule the time you need to read each document you sign carefully, checking for errors.