Mortgage Advice

Preparing For Closing: 7 Things To Do Before the Big Day

July 17, 2014


After spending countless hours searching for the perfect house, you’ve found the one and are ready to seal the deal. Congratulations! All your hard work and patience is about to pay off because closing day is right around the corner. Just think, soon the keys will be handed over and you’ll be able to start creating a lifetime full of memories in your new home.

Are you prepared for the big day? To make sure everything goes according to plan, here are seven things to consider when preparing for closing:

  1. When the purchase agreement is drafted, there will be a projected closing date included in the contract. It is important to understand this is simply a target date, not the actual closing date. After your purchase agreement has been drafted and your mortgage application has been submitted, there are still a few steps that need to be completed before closing can commence.
  2. Before your application receives the stamp of approval, an underwriter will review your financial information to ensure required lending guidelines are met. Don’t be shocked if your loan is approved with conditions, as this is common. This simply means there are additional requirements that need to be satisfied before you can close, such as ordering an appraisal and securing homeowners insurance.
  3. Expect the underwriter to ask for additional documentation and provide your lender with the requested information as soon as possible. The sooner you can provide your lender with all the necessary paperwork, the smoother the closing process will be.
  4. Once all the necessary documentation has been collected, your file will go back to underwriting one more time. Once it is reviewed and all the conditions have been met, the underwriter will issue a “Clear to Close.” This is when your actual closing date will be scheduled.
  5. Prior to closing, the title company will prepare a closing disclosure. This document outlines the final amount you will need to bring to the table, including your down payment and closing costs. It also states the amount of your monthly mortgage payment and when the first payment is due.
  6. Your lender will send you the closing disclosure for final review one to three days prior to closing and explain what paperwork you’ll need to bring. It’s important to review this document thoroughly and make sure you understand all the information that’s included.
  7. On closing day, make sure to bring a cashier’s check made payable to the title company for the full amount stated in the settlement statement, as well as your drivers license and proof of homeowners insurance. If your title company requires that funds be wired directly, ensure that all of the appropriate information is in order prior to the transfer. All you have to do next is sign on the dotted line.

Buying a home is a complex process, and there are a lot of moving parts that need to come together before closing day. The key to closing on time is to start preparing ahead of time. If you have a good team and do your part to help, you will have a smooth and successful home buying experience.

If you have any questions about preparing for closing, send us a message. We’d be happy to provide you with an answer.