The Mortgage Closing Process Explained
Double-check that you're getting a good deal...
What to expect
If you’re purchasing property, your closing is likely to be a little more involved. You’ll:
- Complete a final walk-through
- Pay your closing costs and down payment
- Clear any funding conditions
- Get your keys!
If you’re refinancing, you might have to:
- Bring in cash for closing costs (follow your lender’s instructions, because a personal check won’t cut it)
- Receive cash, if you’re getting a home equity loan or cash-out refinance
- Take care of funding conditions (for example, clear a collection or tax lien.
Of course, you’ll be signing a lot of paperwork. Before doing so, however, you must absolutely understand what you’re committing to when you sign those final documents. Read more to achieve that understanding.
There will be many closing documents to review and sign. These may include:
- HUD-1 Settlement Statement
- Truth in Lending Statement TILA Statement
- Mortgage note
- Mortgage or Deed of Trust
- Certificate of Occupancy
These sample closing documents are on external sites, and will open in another tab or browser for you.
Closing a mortgage should come with no surprises, but be prepared to put the brakes on if there are. Your loan officer should either be at the signing with you or available by telephone during your appointment to answer any questions or take care of issues that arise. Don’t sign anything you don’t 100 percent understand or agree with, and you’ll be fine.