The Mortgage Process: Part 5, Closing
With most of the steps of the mortgage process in the rearview mirror, it is now time to cross the finish line and close on your new home. Phew! What does the closing process look like? Read on for what to expect when you come to the closing table.
Clear-to-Close
The phrase “clear-to-close” is a mortgage company’s way of saying you are officially approved to purchase your new home! All the necessary steps have been taken in the application, processing and underwriting processes and your loan has been approved to move forward. Once you have received this notification from your lender it is time to schedule, or confirm, your closing date and time. This milestone is an exciting one and means you are in the home stretch.
Closing Process
On the day of your closing, you will likely travel to the office of the title company handling your transaction. Your Realtor and/or your Mortgage Consultant may join you too.
When you go to your closing, make sure you bring copies of any necessary paperwork along with any ID requested by your lender. You should expect to sign quite a few documents. Don’t worry though, your closing agent will explain everything to you and answer any questions that may arise. Here is a quick breakdown of what to expect:
- You will review and sign all the necessary loan documents. Make sure you understand each document you are signing and if you have any questions do not be afraid to ask! Cambria Mortgage and our partners are here for you and want to make this process an enjoyable one.
- If required, you will provide documentation of homeowners insurance and any necessary inspections.
- You will provide funds for your down payment along with any closing costs, prepaid interest, taxes and insurance. The exact amount needed will be communicated to you prior to your closing date so that you can prepare the cashier’s check for the correct amount.
- In order to officially purchase the property, your lender will distribute the funds for the purchase to the closing agent. This may be done outside of your meeting, don’t worry if you don’t witness that part of the transaction.
Since the closing process involves multiple legal processes, make sure you give yourself ample time to complete the process. It is not difficult at all, but it can take up to a few hours depending on your location and the complexity of the process to transfer ownership.
What’s Next?
As soon as all of the paperwork is completed you will receive the keys and pertinent information for your new home. You’re well on your way to filling up that moving truck! It’s easy to get wrapped up in all the excitement, but don’t forget to get everything set-up at your new place. You will need to arrange for things like internet and phone to be set up, forward your mail to your new address and be sure you’re aware of all your utilities at the new house. Oh, and make a note of your monthly mortgage payment to be sure you stay on schedule!
Well, this article concludes our home buying step-by-step series… But that doesn’t mean it all needs to come to an end. Even though you might feel like an expert after following along with these articles, it’s pertinent to have the right professionals on your side. Our team at Cambria Mortgage is here for you. Give us a call today at 952-942-0110 or visit our website CambriaMortgage.com to get on the road toward signing for your dream home!