Unless you have gone through it before, the mortgage closing process can seem a bit mysterious. Once you understand what happens, though, you will see that the process is fairly straightforward. Closing will occur once your loan is approved and all conditions of your sales agreement and loan are met and approved.
Before your loan can close, many people will be hard at work to get everything done. The buyer and seller reach an agreement, at which point the loan application and approval process occurs. Next is home inspections, contingencies and conditions of the purchase agreement, and final documents requested by us. At this point, closing can be scheduled.
To get ready for your closing, get together any documents you have received, such as your Loan Estimate, proof of title search, proof of homeowners insurance, purchase agreement, home inspection reports, and home appraisal.
You will need to sign documents during closing, including the agreement between you and the seller and between you and the lender.
You will also pay escrow and lender fees, or closing costs. Depending on your loan, you may be able to roll closing costs into your mortgage. Some lenders will also pay closing costs if you want to trade off for a higher interest rate.
An agent will conduct the closing meeting and make sure all documents are signed and recorded. The closing may occur at the title company, lender's office, escrow company, or settlement agent's office. You will need to sign the Closing Disclosure, which includes the closing costs; the final Truth in Lending Act statement that covers your APR and loan costs; the mortgage note that states your promise to repay the loan; and the mortgage or deed of trust that secures the note.
Once these documents are reviewed and signed, you will get the keys to your new home.