From Curious to Confident: Conquering Closing – Your Guide to the Final Steps in Buying a Home
At this step you’re almost at the finish line! Closing day is the final milestone in your home-buying journey, and being prepared for it can make all the difference. In this post, we’ll go over the key elements of the closing process so you can walk in informed, confident, and ready to take ownership of your new home.
Understanding Closing Costs and Documents Closing involves a series of steps to finalize your purchase and secure ownership:
1. Closing Costs: Expect to pay fees covering title insurance, lender charges, taxes, and more. These generally amount to 2-5% of the purchase price.
2. Lender Documents: You should receive your closing documents to review 3 days before closing, this gives you time to review final numbers and more to ensure everything is clear before closing. If any cash is needed to close on the home, you will be made aware that there is a “cash to close” amount, final versions of these documents will be signed at closing.
3. Closing Documents: At closing, you’ll sign documents like the deed, mortgage note, and disclosure forms. Review these with your agent or attorney to ensure you understand what you’re signing.
Common Closing Day Questions Many buyers have similar questions on closing day, so here’s what you need to know:
1. What is Title Insurance? Title insurance protects you in case any title-related issues arise. This is typically a one-time fee paid at closing.
2. What Are Prorated Taxes? Since property taxes are often paid annually, prorated taxes account for the months of the year the seller still owned the home.
3. Do I Need to Bring Money to Closing? Check with your lender ahead of time to find out if you need to bring “cash- to- close”, a cashier’s check or complete a wire transfer in order to complete closing.
By preparing thoroughly for closing, you’ll avoid last-minute surprises and be able to focus on celebrating your new role as a homeowner!
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