You found the home you want to buy, went through the application process and finally have a closing date. During your mortgage closing appointment, you will finalize your mortgage and sale documents as well as receive the keys to your new house.
Many mortgage closings happen every year (in 2020, the National Association of Realtors® states that people purchased 5.64 million existing homes). Although this is a standard process, it is a good idea to review what happens at closing, so you know what to expect.
The basic process
The real estate closing process follows this general process:
- If you took out a loan to buy the home, you review and sign all this documentation.
- You provide proof of completed inspections and home insurance.
- You give a down payment to your lender (if applicable).
Your lender will distribute the funds that cover the amount of your home loan to the closing agent. Depending on your loan terms, you may also set up an escrow account.
The three documents you sign
During the real estate closing process, there are three main forms of documentation you will review and sign. These include the closing disclosure, the promissory note and the deed of trust for your mortgage.
Although you may be eager to sign all of these documents and get the keys to your new house, review all paperwork carefully during your closing appointment. If something looks wrong or is incorrect, wait to sign this document and finalize the sale of the property.