The time between the mortgage application and accepting the keys is an exciting but stressful period. For buyers, there is much to do and you may not know about your lending approval for weeks. You won't be lacking for guidance as both your real estate agent and your lender do their best to keep you informed about goings-on and what to expect at closing. You may be hearing about what to expect by way of several different forms and disclosures that could come from your lender and sometimes, your real estate agent. Read on to find out more.
Financial Matters Addressed
Closing activities are largely concerned with financial matters so you will find the bulk of things happening during closing to be related directly to your mortgage. You will probably also receive a formal document form the lender outlining various matters before you close. While the name varies by location, its contents are usually pretty standard. Take a look at the financial information the lender is required to provide you with before you sit down at the closing table. Look it over carefully and contact your lender if you see any errors or don't understand any part of it.
- Loan Details – If you were so excited about finding a new home that you failed to pay attention to the loan details, now is your chance. The disclosure forms will list the amount you are financing along with the agreed-upon interest rate.
- Fees for the Loan – It is likely that you paid a loan application fee and that there are also loan fees (or points) as well. This can be a confusing issue since buyers often pay points in return for a lower interest rate. You are always saving a lot more money over the life of the loan when your interest rate is lower so points are well worth it.
- Credit Check Fees – This fee varies from place to place and is payable either directly to the lender (and you've likely already paid it) or at the closing depending on local customs.
- Title Search Fee and Title Insurance – While it can vary, the closing may be hosted by the title search company. You probably don't have to pay for that but you do have to pay them to research the title to make sure no one else thinks they own the property and for insurance to fight any issues that arise about the title.
- Miscellaneous Fees – Some of these fees are paid directly by the buyer at the time of the service but some are paid at the closing and that includes appraisal services, survey fees, and miscellaneous legal fees.
For a better idea of what to expect with the closing of your single-family home, speak to your real estate agent.