When buying a house, it does not officially become yours at closing. Knowing what to expect at closing can make it go a bit easier for you. Closing involves a lot of paperwork. You will feel like all that you do is sign papers over and over and over again. You sign a settlement sheet, which explains where all of the money is going. You also sign the mortgage note, the Truth-in-Lending document, and any other documents required by your state’s laws.
Money is transferred at closing to finalize the home purchase. This is done with a cashier’s check. The lender lets you know the amount that you need to bring to closing. The amount covers your down payment and any closing costs. Closing costs include a variety of expenses from the appraisal and attorney fees, to homeowner’s insurance, to any points that you purchased. The lender lets you know prior to closing what the closing costs will be so that you know exactly how much to bring to closing.
Another part of the closing, is for the lender to set up an escrow account to pay for your property taxes and mortgage insurance (PMI), if applicable.
The final step in closing is getting the keys. It is now your house! While you go try out those keys and move in, all of your documents are being filed at the appropriate places to ensure that the transfer is complete and successful.
