Maybe the most important individual day during any mortgage loan process is the closing day. This is when you get all your documents signed and finalized, and at Primary Residential Mortgage, we’ll get you prepared for every little detail you need to know. With that in mind, let’s look at some of the basics of closing day with your mortgage company – who you’ll be seeing, what you’ll be signing, and what it means for you and your family.
Who is There?
Depending on a few factors, such as the state you’re in, the property type and a few others, there might be several people present at your closing besides you. These could include:
The sellers or building representatives, and their attorneys
Real estate professionals (yours and the seller’s)
Closing agent (a representative from the title company, or a real estate attorney)
The closing will either be held at the title company’s office or the lender’s office, though they’re sometimes held at a real estate attorney’s office or somewhere else entirely. Here are the tasks you’ll complete during closing:
Review and signing all loan documents – if you’re confused about any details at all, be sure to ask. Don’t sign if you have any issues, or the loan is different than your agreed upon terms.
Provide homeowners insurance and any inspection evidence required.
Provide your down payment, closing costs, prepaid interest or any taxes and insurance.
If the loan requires it, you’ll set up an escrow or impound account with the lender to pay for property taxes and insurance.
What is Signed?
There are a few common documents that will be signed at almost all loan closings:/psan>
Deed of trust or mortgage: These are the documents that outline a lien on your property, which functions as security for the repayment of the loan itself.
Closing Disclosure: Abbreviated CD, this is a full, itemized list of your final credits and charges. You’ll receive this document to review several days before closing day.
Promissory note: This is the equivalent of a legal IOU – it’s your promise to repay the lender according to the terms you agreed upon, from dates of payments to the locations where they’ll be sent.
Want to learn more about closing costs, or any other element of our mortgage processes? The brokers at Primary Residential Mortgage are awaiting your call.
If you're ready to take the next step, work with a team that can provide the personal attention you deserve. Our mortgage company has helped over 200,000 borrowers fulfill their dream of home ownership. We'd love to help you too!