The Closing

Once your loan has been approved and you have decided on a closing date, you will want to do a final walkthrough of the home to ensure that the home is in “as-was” condition. In other words, you want to ensure that the home appears as it did when you offered the Contract of Sale. In addition, this is your opportunity to determine if requested repairs have been made to the property and meet your approval.

The closing procedure will be conducted by a lawyer, generally at the closing attorney’s office. The day before, you will be told the total dollar amount you will need to bring to closing by the closing attorney. They will also provide you with any additional information you may need to prepare yourself for the proceedings.

On the day of closing, remember to bring:

  • A certified check for the total amount of your closing costs.
  • A picture ID, such as a driver’s license.
  • Your personal checkbook.
  • Evidence of mortgage insurance (if this information has not already been requested).

Closing Costs Include:

  • Attorney’s fees
  • Property taxes (to cover the tax period up to that date)
  • Loan origination fees (this covers the lenders expenses)
  • Recording fees
  • Interest (paid from the date of closing to the 30 days before first payment)
  • First premium of mortgage insurance
  • Title insurance
  • Survey fees
  • First payment to the escrow account for future taxes and insurance
  • Loan points (a “point” is a fee that equals 1% of the loan amount. They enable you to secure a lower interest rate for the mortgage.)
  • Home inspection fees (if you choose to have an inspection)
  • Any additional preparation fees.

During the closing, details of the sales contract will be explained to you. If everything meets your approval, you will sign all of the contracts to finalize the deal.