What To Expect at Your Mortgage Closing

As your closing day gets closer and closer, you might start to feel a little nervous. Do you have everything you need? Will something delay the closing? These worries are natural, but the more prepared you are, the less overwhelming it will all seem. 

While closings can differ, based on the type of transaction (purchase or refinance), it is a good idea to attend the closing knowing the basics. Let us clear up some of the most common things to know. 

Go Through Your Closing Disclosure 

Your lender is legally required to provide you with a Closing Disclosure three days before you close. This document details all the final figures, like your monthly payments, Cash to Close amount, prorated taxes, etc. It is in your best interest to go over these numbers thoroughly so you can compare it to those you see at closing. If there are any discrepancies, speak up! 

Come with Identification

Your title company will require identification before you start signing documents at the closing. Double check with the company what kind of ID is accepted. In many cases, title companies require two forms of ID, so it is a good idea to arrive with your Social Security Card in addition to your state-issued driver’s license. 

How to Pay 

Most title companies accept payment of the Cash to Close amount via a cashier’s check or wire transfer. Keep in mind that the funds must come from an approved bank account, which is reviewed by your mortgage lender prior to closing. If you arrive with funds from a different bank account, it may delay your closing. It is also a good idea to come with a personal check, just in case the closing amount changes slightly. 

There Will Be LOTS of Things to Sign 

When you arrive at the closing, try not to be overwhelmed by the number of papers you will be asked to sign. An attorney of the closing agent will explain every document, and you can ask for as much clarification as you need.  

Closing During COVID 

At the time of this writing, the Coronavirus pandemic is still at large in the U.S., and it has changed the way mortgage transactions take place. Do not be surprised if your closing looks a little different as well. It might mean that some of the signing is done electronically, or that the seller is not present at the closing. There might be social distancing measures at the office where the closing takes place. The best practice is to communicate clearly and constantly; ask your lender and title company about the safety measures they have in place so you can be as prepared as possible. 

Closing on your new home is an exciting prospect, so of course you will want it to go smoothly. By showing up knowledgeable and prepared, you can help take away the stress of the day so you can focus on the best part: closing on your mortgage and moving into your new home!

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