Congratulations! You’ve made it to closing day on your new home!
There have been some ups and downs through the bidding process and appraisals and inspections, but now you’ve reached the part where you actually become the owner of your new home.
Many people think of closing day as a simple matter of signing some papers and handing over money, but with it being such a huge life investment, it’s not that simple and straightforward, so it’s important to show up to your closing fully prepared (especially with a FSBO).
Read on as we break down closing day, what you need to know, what to be prepared for, and how Leading Edge Title can make this the stress-free and exciting day it’s meant to be.
What is Closing Day?
Closing day is when you legally become the owner of your new home.
The closing date is set by the seller and buyer after the offer is accepted. Between the offer acceptance and the closing is escrow—a period of several weeks during which inspections, appraisals and title searches take place.
It’s important to pick a date when you do not have many other obligations because you’ll need more than a lunch break to finish closing. Don’t choose a date at the end of the month either, because if there are any hang ups, you’ll want time to sort it out.
Who Will Be There?
Closing day is more than you and the seller and—with all the documents you’ll be signing and the investment tied to them—you’ll be thankful for the extra help. For one thing, it’s important to have your real estate agent or lawyer present to answer any questions that might pop up.
A closing agent conducts the meeting, and a mortgage lender and title agency representative will also be present. If the seller has pre-signed the deed and transfer documents, they may not need to be there.
What Do I Need?
Closing day mostly consists of reviewing and signing documents (and there will be plenty of documents!). You should also bring with you any documents you’ve received throughout the home buying process such as your inspection reports, proof of insurance and any documents your lender asked for during the approval process.
Some of the documents you’ll receive and sign at closing include:
- The deed to the property
- Mortgage note
- Loan estimate and closing disclosure
Closing day is also when you’ll pay closing costs and make escrow payments. This will need to be paid via wire transfer, which is why Leading Edge provides you with the amount due beforehand.
What Can Go Wrong?
Last-minute hang-ups can always come up, but if you know what to expect, you can avoid them to ensure your Closing Day is simple and successful.
The most common cause of delay is a delay in payment. Your down payment needs to be wired to the title agency or closing attorney the day before your closing date. It’s important to know your bank’s wire procedures well in advance, so something this simple doesn’t hold anything up.
Inconsistencies with paperwork can also dampen your closing day. Throughout the entire home-buying process, it’s important that all documents use the same legal name. Your name should exactly match your driver’s license or official ID, credit report and any other document you’ve used during the process. Even if one form has your middle initial and one doesn’t, this can cause delays in the end stages.
Your lender will also do a final recheck of your credit just before closing. Large purchases during escrow can affect your credit which can in turn affect your loan agreement. Do not take on any substantial debt during escrow because it will affect your mortgage rate and possibly delay your loan approval.
Your final walk-through will also determine whether your closing date will go forward without any hiccups. At the final walk-through, you should check that the house is still in the same condition as when you agreed to buy it, minus any normal wear and tear. This is even true for new construction homes. You can also schedule a second inspection before the walk-through if any major repairs were necessary during escrow.
How Leading Edge Takes Care of You
Closing day is the final hurdle to securing your new home, and at Leading Edge, we’re here to make sure it goes off without a hitch. We also collect seller docs so you can be sure no stone is left unturned. We also provide mobile closers and bilingual staff to make the process work for you.
With more than 15,000 closings to our name, we know what to expect and we can help you avoid any unwanted surprises. With Leading Edge, your closing day will be simple and stress-free.