The closing process is the most critical aspect of buying your next home. For many first time homebuyers, this process can seem overwhelming. There is often a lot of paperwork and legal requirements that must be met prior to closing. If you are purchasing a home for the first time and are unsure of what you need to close on your home, then you are in the right place. Here are some of the things you need to bring with you on closing day.
Many of the documents that you will need to review on closing day will be provided during the closing process. However, you will need to bring several things with you on closing day to ensure a smooth closing process. Here is a short list of things you should prepare to bring with you to closing:
Of course, this list is not exhaustive. You should work with your real estate agent and closing attorney to determine exactly what you need to present at closing.
A government issued photo i.d. Will be used to verify your identity on closing day. The title company running your mortgage loan closing, for example, will check your ID and make copies of it at closing. Possible forms of ID include a driver’s license, an ID card, or a passport. Every person who is named in the mortgage loan must present their photo ID, as the title company will need to verify their information as well.
At closing, you will be responsible for paying closing costs, property taxes, insurance, and your down payment. This payment is called you “cash to close” and represents the amount of money you will need to close. However, you cannot use cash or a personal check to make this payment. Rather, you must present a cashier’s check or certified check that includes the amount required to close on the mortgage loan. A cashier’s check, or certified check, essentially means that the bank is certifying that funds are available to pay the amount on the check.
The closing disclosure will list the costs of your loan as well as the final terms. This document will be provided to you from your lender at least three days before closing. In this document, you will see the loan amount, the interest rate, the monthly payment, property taxes, homeowner’s insurance and private mortgage insurance (PMI), if required.
By bringing the closing disclosure to the closing, you can compare the terms of the mortgage papers to make sure that everything looks correct. If there are discrepancies, you can ask your lender and title company for clarification.
You will be required to have a homeowner’s insurance policy before a lender approves you for a mortgage. A homeowner’s insurance policy will protect you in the event that the home is damaged or destroyed.
What kind of proof do you need to present at closing? Typically the policy’s declarations page will be sufficient. On this page, you will find your contact information, a description of the home, and the insurance policy premium. Be sure to check with your title company to make sure you have the proper documentation prior to closing.
The closing process is not always easy, and you may have questions about what you need to do in order to close on your new home. Fortunately, you do not have to go into closing alone. With the help of your real estate agent, lender, title company and closing attorney, you will have the support you need for a successful closing.