Congratulations! The home buying journey is almost complete. You have been giving a closing date and time. What should you expect to happen at the closing table?
The Closing Disclosure
Three days prior to closing, you will receive a copy of your Closing Disclosure (CD). This disclosure breaks out all aspects of the mortgage including loan amount, down payment, interest rates, closing costs, etc. You must acknowledge the receipt of the CD before the mandatory 3-day waiting period beings before you can close. Typically, you do this online.
If you don’t understand something on the CD or you find an error, let your mortgage originator know ASAP. Any change may require an additional 3-day wait period to begin.
What to bring to closing
Your photo ID: A government-issue photo ID will be needed by the title company. (If you are recently married and just changed your name, the ID should match the name that will appear on the property’s title and mortgage. If you have any question on this, contact the title company.
Your Money: The Closing Disclosure will state how much money you need to bring to closing.
It will consist of your down payment and closing costs. Once you know this amount, get a cashier’s check from your bank. Speak with your originator or loan processor about this as you may also wire the funds directly to the title company. The cashier’s check must be drawn from the bank account that the mortgage underwriter verified earlier in the underwriting process.
Also bring your personal checkbook to closing in case any small unforeseen expenses crop up.
The Closing Process
When you arrive at the title company at your scheduled time, you will meet your Closing Coordinator. The closing process itself is very easy, just a lot of signatures. If you reviewed the Closing Disclosure thoroughly, then there should be no surprises.
There is a chance you run into the seller or seller’s agent, but typically you won’t see them since they may sign their documents at a different time.
When Do You Get the Keys?
When both parties (seller and buyer) have signed the documents, the title company will send the signed papers to the mortgage company for a quick audit. Once the audit is complete, the mortgage company will authorize the funding of the mortgage.
Typically, the time period between signing documents and getting keys can be anywhere from 30 minutes to a few hours. So the earlier in the day you sign the better since it gives more time for the mortgage company to fund the loan. Remember, you are most likely not the only closing taking place and the funding department can get busy.
When the mortgage is funded, you will receive a call from the title company telling you it’s time for you to pick up the keys.
What If Your Closing Is Delayed?
It is not uncommon for a closing to be delayed. This can happen for many reasons and you must trust that everyone involved is doing all they can to make your loan happen on time. Most new buyers schedule movers, utilities, etc to happen on a specific day so give yourself some wiggle room. Also, try not to schedule anything for a few hours after the closing is supposed to start in case your closing time runs over.
Be prepared for things to go awry like someone gets stuck in traffic, a document is missing, or a name is misspelled. But don’t stress, simply do what’s in your power to make the day go off without a hitch.