Closing Process

The home buying process is full of paperwork, important dates, contracts, market movements and checklists that can even overwhelm seasoned real estate investors. One of the main reasons to make sure you’re working with a professional real estate buying team is the fact that you get to lean on their combined experience to ensure a smooth and painless closing.

Some agents and loan officers can close upwards of 20+ transactions a month. Compared to the 5-7 homes an adult may purchase in his/her lifetime, you can obviously see where it helps to have a few trusted professionals in your corner.

Helpful Link: Talk The Talk – Know The Mortgage Lingo At Closing

The closing process can be argued as the most critical part of a real estate transaction where the most amount of things can go extremely wrong. This is where that professional team will really prove their value.

If all of the initial questions, concerns, documents and contingencies were addressed early in the mortgage approval and home shopping process, then you should feel confident about walking into the closing with all bases covered.

However, we’ve listed a few bullets, links and frequently asked questions on this page to help highlight a few important topics you may want to be aware of during the closing process.

Six Prior-to-Closing Conditions That Can Delay Your Escrow

Updated Income / Asset Documentation

You may have supplied your lender with a mountain of documentation, but make sure you continue to save all of your new paystubs and financial statements as you move through the process. Chances are your lender will want updated documents as you get closer to closing.

Step 2 – Determine Which Loan Program is Best for You

With all the options available today, you need expert advice to help you choose the right program for your unique situation. Your trusted mortgage advisor will be able to come up with several loan options based on your goals, what you qualify for, and a mortgage plan you feel comfortable with. Below are just a few popular programs that can help you refinance.

  • HARP 2.0
  • FHA,VA and USDA Streamline
  • Conventional and Jumbo

Some of these programs offer no appraisal, no mortgage insurance and many do not even require any equity to qualify.

Credit Inquiries
Placeholder
Employment Verification
Placeholder
Funds for Closing
Placeholder
Title and Judgement Searches
Placeholder
Homeowners and Flood Insurance Coverage
Placeholder
Funds to Close

If you are required to bring in a down payment and/or pay for closing costs to finalize the transaction, you’ll need to bring a certified check from a bank. The escrow company, your agent and loan officer should provide you with a full breakdown of all fees / costs involved in the transaction.

While these final numbers may be more accurate than the initial Good Faith Estimate, which was provided at the beginning of the application process, there will still be a small buffer amount added by escrow to cover any prepaid interest or other minor changes.

If you don’t have to bring in any funds to close, then you might actually be getting a portion of the Earnest Money Deposit back

Keep in mind, it is important to make sure these funds to close come from the proper sources.

Items to Bring to Closing Appointment

Your real estate agent and/or mortgage loan officer should be providing you with a final list of documents that need signatures or updated verifications, so the general list of items needed at closing is quite basic:

  • HARP 2.0
  • FHA,VA and USDA Streamline
  • Conventional and Jumbo

Some of these programs offer no appraisal, no mortgage insurance and many do not even require any equity to qualify.

Proof of Identification
Placeholder

Frequently Asked Questions

Does It Matter Which Day Of The Month I Close?

If you are required to bring in a down payment and/or pay for closing costs to finalize the transaction, you’ll need to bring a certified check from a bank. The escrow company, your agent and loan officer should provide you with a full breakdown of all fees / costs involved in the transaction.

While these final numbers may be more accurate than the initial Good Faith Estimate, which was provided at the beginning of the application process, there will still be a small buffer amount added by escrow to cover any prepaid interest or other minor changes.

If you don’t have to bring in any funds to close, then you might actually be getting a portion of the Earnest Money Deposit back.

Keep in mind, it is important to make sure these funds to close come from the proper sources.

I Am Refinancing An FHA Loan, Will It Benefit Me To Close In The Beginning Of The Month?
Placeholder
Should I Be Concerned About The Closing Date On A Conventional Loan Refinance?
Placeholder