An Overview of the Mortgage Loan Closing Process

Closing your mortgage loan is an exciting day – you will finally be able to say the home is yours when the process is complete! At the same time, closing day involves completing a number of legal requirements and the entire process can be rather time consuming. Therefore, the better prepared you are for closing, the more quickly and smoothly the process can be completed.

The day before the official closing, be sure to gather together any paperwork you may have received during the process. This may include proof of homeowner’s insurance, flood certification, and inspection reports. You need to take these documents with you so you can refer to them if necessary.

It is also a good idea to take one last walkthrough of the property within 24 hours prior to closing. That way, you can make sure the seller has actually vacated the property and that the home is in the condition you expected it to be. If you discover that there are any problems with the home, you can delay the closing or make a request for the seller to put funds into escrow to cover any repairs that may now be necessary.

Once at the actual closing, you will be asked to sign a number of legal documents. These documents will include an agreement between you and the seller of the home as well as an agreement between you and the lender. You will also be asked to pay for the closing costs, though it is possible to have these fees rolled into the total amount of your mortgage loan.

The exact procedures followed at the closing may vary. In general, however, the closing agent, the home seller, the home seller’s real estate agent, a representative of the lending institution, and a title company representative will be present.