When you’re a first-time home buyer aiming to land a property, you must know that you will have to go through a lengthy process to close the deal. It involves undergoing a month or so of gathering all the necessary documents and applying for a mortgage loan in hopes of getting approved on time to get the house of your dreams!
A moneylender or bank will look at your application, including your offer for the home you’re planning to buy. Once they accept your proposal, an appraisal is initiated to guarantee that the property’s worth is equal to the amount of money you’re willing to borrow and pay for over time.
Now all you have to wait for is the deed, which should be transferred under your name, as you meet with people during the closing day to sign papers, accomplish agreements, and more. Keep reading below to find out the tips to remember so that you can face closing day well-prepared.
Things to Bring on Closing Day
Before the closing day arrives, you should ask your agent or mortgage lender about the essential things to bring with you. Typically, you will need any proof of identification, such as your driver’s license or passport, and a cashier’s check or wire transfer receipt as proof of your closing funds.
You also want to be sure by bringing your checkbook in case the need arises, as well as the proof of documents showing that a reliable lender approved your home loan. You will receive a closing disclosure before the appointed day containing all the necessary details, such as a part of the property taxes, lender origination fee, title insurance, and other expenses. You will need to bring it on closing day as well.
Know the People Involved in Closing a Home
Depending on where you live, a closing meeting can involve different people. But a typical closing day consists of yourself, the closing agent, a title company representative, your and the seller’s lawyers (if necessary), the real estate agents involved, and the seller. A representative of your bank or lender may also be present.
While it could look like a lot of people, it’s only necessary to face them because it involves a significant decision in your life that costs a considerable amount of money.
Closing Day: What Happens During the Meeting
During the closing meeting, which will be supervised by the closing agent, you can expect to sign plenty of documents that come in several copies. They consist of the closing disclosure, the deed of trust or mortgage, and a promissory note.
You’re expected to read through the documents slowly but surely to guarantee all parties involved that the policies are clear and for the benefit of everyone—especially you as the homeowner to-be. If there are specific parts of a document that remains unclear, you should make an effort to ask questions or go over them with your attorney.
Simultaneously, the home seller will also be signing documents. Later on, both of you will sign your names on the standard closing documents given by the title company. It involves an affidavit of any previous judgments, divorces, or bankruptcies, a compliance agreement, and a disbursement agreement.
Reminders for Closing Day
Never sign documents that have blank lines and only sign where you are indicated to do so. You should also double-check the bill of sale to clarify any queries that might come up later on. Buying a home for the first-time entails receiving a certificate of occupancy to verify your property.
After accomplishing all the documents, you will gain a closing packet to keep in a safe place. If you receive digital copies, you should learn to duplicate them as well for even better safekeeping. Lastly, the owner will provide you the keys to your new home, and you can start moving in and calling it your own!
Home Buying with Deserts Springs Mortgage LLC
The closing day is a crucial part of purchasing a home that you should take seriously—after all, your future investment is on the line! As a first-time homebuyer that’s sure about your decisions and requires a loan, you should learn to choose a mortgage company you know won’t bring you down. Remember the tips above regarding your closing meeting and prepare yourself for the day that will dictate the beginning of your new life.
Are you looking for Phoenix mortgage brokers who can help provide the best interest rates? Desert Springs Mortgage LLC is a full-service mortgage brokerage offering conventional, FHA, VA, USDA, foreign national, commercial, lending, reverse mortgages, and numerous other financing options. Get in touch with us today at (623) 432-1309 to start applying!