Closing Day: Who Is at the Table and What You Sign
By Mark Jost, NMLS #150914 · Published
Closing day is the day the home becomes yours. Most of my buyers feel a little nervous the night before. That is normal. When you know what to expect, it gets a lot easier. Here is how it works.
Before closing day
Your lender must give you a paper called the Closing Disclosure at least three business days before you close. It lists your final loan terms and costs. Use those three days. Sit down with it and a copy of your Loan Estimate, the form you got when you first applied. Compare the two. Small changes can happen, but if something looks wrong or you do not understand a fee, ask right away.
You can also ask to see the other closing papers early. If you can't get them ahead of time, write down your questions and bring the list with you.
The final walk-through
On the day of closing, or just before, you get one last look at the home. Check that any repairs the seller agreed to are done. Check that the things that were supposed to stay are still there. Make sure nothing new got damaged since your inspection. If something is off, tell your agent before you sign.
Who is at the table?
Who comes can be a little different from deal to deal. Usually you will meet with a closing agent, who runs the meeting, walks you through the papers, and handles the money. You will be there as the buyer. Your real estate agent often comes too. The seller may sign at the same table or at a different time or place. You can also bring a co-borrower, if you have one. If you want an extra set of eyes, you can bring a trusted friend or advisor.
What you sign
You will sign a stack of papers. These are the main ones:
- Closing Disclosure. The final list of your loan terms and costs.
- Promissory note. Your promise to pay the loan back.
- Mortgage, or security instrument. This gives the lender a claim on the home if the loan is not paid as agreed.
- Initial escrow disclosure. If part of your payment will cover property taxes and homeowners insurance, this shows what will be collected.
- Deed. The public paper that shows the home passing from the seller to you.
Read what you sign. Check that your name is spelled right and that the numbers match your Closing Disclosure. Ask about anything that does not look familiar.
What to bring
- A photo ID.
- Your closing funds, if you owe any. Ask your closing agent exactly how to send them. This is often a wire or a cashier's check.
- Your copy of the Closing Disclosure and your list of questions.
- Your co-borrower, if you have one.
One important safety tip: before you send any money, call the closing agent at a phone number you already know to be real, and confirm the instructions. Do not trust new wiring instructions that come by email without checking first.
Questions to ask before you leave
- Will my taxes and insurance be part of my monthly payment?
- Where do I send my monthly payments, and when is the first one due?
- If I live in a neighborhood with dues, how do I pay them?
- Who do I call if I have questions after closing?
After you sign
Keep your final loan papers somewhere safe, including your Closing Disclosure, promissory note, mortgage, and deed. Set up your power, water, and gas ahead of time if you can, and update your address with your bank and other companies. Then pick up your keys.
If you are buying in Nashville, Franklin, Brentwood, or anywhere in Middle Tennessee, call me. I will walk you through each step so closing day feels easy.
Sources
- CFPB: What should I do before, during, and after the mortgage closing process?
- CFPB: The essential steps to close on your home with confidence
- CFPB: Know Before You Owe, Mortgages
- Fannie Mae: What to Expect at Closing on a House
This article is general information, not a loan offer or legal advice. Every loan depends on credit, income, and property review. Mark Jost, NMLS #150914. Heathrow Mortgage, Company NMLS #1849599. Equal Housing Opportunity.