You are now an expert on how to buy a house – you went to open houses, put in offers and found the home of your dreams! Fast forward to the closing, the end of the road of your home buying experience. Now you’ve found yourself in a conference room- pen in hand, ready to sign away. While the closing home timeline varies for every closing, most likely in the next couple of hours, you will officially be a homeowner!
What is a Home Closing? In simple terms, a closing is where the home purchase is finalized and ownership of a property is transferred from seller to buyer and made official with the county.
Things to Expect During the Closing Process
Your lender will send all the mortgage paperwork to the title company- who acts like an impartial 3rd party between the sellers, the buyer and the buyer’s lender. The title company representative, the closing agent, will take care of things from this point on. The closing agent handles all the paperwork, money and instructions. The paperwork will contain all your mortgage closing information including rate, term and monthly payment amount. The amount of loan docs will depend on the type of loan and your lender.
There will also be federal and state mandated documents and disclosures. Included will be a closing settlement statement that both parties sign that outline all the debits and credits within the transaction. This will include any seller credits (like closing costs) and tax pro-rations. While all of these documents are important- the most important document you will sign will be the Deed of Trust, this is what is formally recorded with the county the home is located in and states you are the new owner.
While signing a ton of documents can be daunting – it’s important that you know what you are signing and why. The title representative will help walk you through all the closing documents and should do a good job explaining and answering questions. While not required, it’s beneficial to have your real estate agent there too to provide some extra support while you’re signing all the documents and finalizing on what will most likely be the largest purchase in your lifetime.
Once your loan documents are all signed, you may or may not get your keys right on the spot. There are still some things that will happen rather quickly behind the scenes. Your lender will be transferring your loan funds to the title company who will then send them off to the appropriate parties. Then, once all is clear – your mortgage documents will get recorded in your county’s office making you the official new owner of your home! It’s important to know that a transaction is not made official until your documents are recorded with the county.
With all the emotion that comes with buying a home, it’s important to know that you’ve made a huge step in the right direction in regards to investing in your future. My hope as a real estate agent, is that no matter whom you’re working with- that your home buying process has been as smooth as possible and that you’re definitely ready for moving day! For more buyer resources check out our buyer page.
Considering a home purchase? Know how much is my house worth before you buy.