What Really Happens During and After Closing

By Debbie Wilson
LoanPage.com Columnist

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Depending upon where you live, your new home loan closing will either take place in a closing agent's office, or a closing agent will come to you. In either case, closing represents that time when final documents are signed, required funds are collected, and loan disbursements become official. This might seem like a truly nerve shattering moment in time, but knowing the closing steps just might allow you to get the job done with peace of mind.

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Closing Steps: What You Should Know

While it is true that there are a multitude of items to consider when purchasing your new home loan, what occurs during and after the closing can be just as important, if not more. And although each mortgage can be very different, there are some important points to consider:
  • » Your closing agent will begin by reviewing the settlement sheet with you. If agreeable, both you and the seller will sign.
  • » You will be asked to sign loan documents, such as the mortgage or deed, note, and Truth-in-Lending statement. Evidence of insurance and inspections are presented at this time.
  • » You will submit a certified/cashier's check to cover your down payment and closing costs. This money may be drawn from an escrow account.
  • » The lender will provide a check covering the home loan amount to the agent.
  • » A new escrow account will be established to cover property taxes and insurance, if applicable.
  • » You will receive the keys to your new home!

Let It Close

Now is the perfect time to make your home ownership dream a reality. With so many beautiful homes on the market today, you can't help but find the perfect one for you and your lifestyle. So don't let a fear of the new home loan closing process scare you away. Just be sure to do your research before signing on the dotted line. Only then can you live your "home sweet home" dream ever after.

About the Author
Debbie Wilson owns and operates a lakeside resort. Her previous experience includes profitability consulting for a national healthcare company. Debbie holds a B.A. in Business Management with a minor in Physical Education.

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