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  • Writer's pictureSunny Settlements

What Happens During Closing? A Step-by-Step Guide

Closing day is an exciting milestone in the home buying process. It's the day when you'll finally take possession of your new home and complete all the necessary paperwork to make the sale official. Here's a step-by-step guide to what happens during a closing:

Step 1: Review the Closing Disclosure

Before the closing, you'll receive a Closing Disclosure document that outlines the final terms of your loan, including the interest rate, fees, and monthly payment. Review this document carefully to make sure everything looks correct and you understand all the terms.

Step 2: Bring Your Identification and Funds

On the day of the closing, you'll need to bring a government-issued ID, such as a driver's license or passport, and any funds required for the transaction, such as your down payment and closing costs. Your lender will provide you with a breakdown of how much you need to bring.

Step 3: Sign the Mortgage Documents

At the closing, you'll sign a number of mortgage documents, including the promissory note, which outlines your promise to repay the loan, and the mortgage or deed of trust, which secures the loan with your property as collateral.

Step 4: Sign the Title Documents

You'll also sign a variety of title documents that transfer ownership of the property to you. These may include the deed, which is the legal document that transfers ownership, as well as any affidavits or other documents required by your state or local government.

Step 5: Pay Closing Costs

At the closing, you'll also pay any closing costs associated with the transaction, such as title search fees, appraisal fees, and attorney fees. Your lender will provide you with a breakdown of these costs in advance, so you know what to expect.

Step 6: Receive the Keys

Once all the paperwork is signed and the funds have been transferred, you'll receive the keys to your new home. Congratulations, you're now a homeowner!

Closing day can be a bit overwhelming, but if you know what to expect and come prepared, it can also be a smooth and enjoyable process. Your title company and lender will be there to guide you every step of the way, so don't hesitate to ask questions or seek clarification if you need it.

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