When buying a home, you hear about the fun home search, the gathering of the documents, and the negotiations. But what about what happens after all of that? Here are some frequently asked mortgage closing questions answered.
Frequently Asked Mortgage Closing Questions Answered
What exactly is a mortgage closing?
A mortgage closing is the pinnacle of your mortgage journey, when you sign all the documents, and finalize your home loan. Generally, during this 2-4 hour signing period, you’ll sign documents that transfer legal ownership of the house to you. Since you are signing so many important documents, it’s imperative that you carefully read each document and take this time to ask any questions you may have before you sign. This will help you understand what you’re signing, and fix any incorrect pieces of information on the legal documents. It’s important to note that you are not able to sign closing documents without a legal form of identification. So make sure you have your ID or passport so you don’t have to reschedule your mortgage closing!
Who is present at the closing?
There are a few key players who will be present at a mortgage closing. Anyone who is on the mortgage needs to be present (i.e., you and your spouse). You might also want to bring an attorney to help with anything that may come up. With both the mortgage documents and the documents transferring home ownership, an attorney could be of great assistance. The escrow company representative will also be present. Your lender, seller, and real estate agent will also likely be present.
Steps of a mortgage closing
Once you show up to sign the closing documents, you have likely agreed on a sale price, completed a home inspection and dealt with any issues that might have come to your attention, contacted a home insurance provider, and reviewed any HOA fees. After you review the closing documents, you will agree to the terms of the mortgage. This is known as the mortgage note. You’ll also sign a closing disclosure that addresses loan rates and agree to an amortization schedule that lays out your payments for the length of your loan. You will then sign the home deed. This legally transfers ownership of the home from a seller to a buyer. Finally, you’ll pay any fees associated for escrow or additional costs. When you have finished signing these documents, you will receive the keys to your new home!
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