Closing On Your Home
The closing date is when the sale of the property is officially completed. The closing location and time will have been previously agreed upon by all the parties involved. There is paperwork that both the seller and the buyer will have to sign at the closing. Don't be afraid to ask your closing or real estate agent about any documents you don't understand. You have the right to know what you're signing.
What To Bring To Closing?
Must have items at the closing for both the buyer and seller are:
- Driver's license/ID to have proof of who you are
- A checkbook for any small miscellaneous fees that may have been missed.
The buyer will have to also bring either a cashier's check to pay for their closing costs and down payment, or have wired the money directly to the closing company prior to closing. Each closing can be different depending on who the closing company is.
Disclaimer: Wire Fraud is Real. Before wiring any money, call the intended recipient at a number you know is valid to confirm the instructions.
Documents To Keep After Closing
On closing day, expect to sign a lot of documents and walk away with a big stack of papers. Here is a list of the most important documents you should file away for future reference.
- ALTA settlement statement. Itemizes all the costs - commissions, loan fees, points, and hazard insurance - associated with the closing. You will need it for income tax purposes if you paid points.
- Truth in Lending Statement. Summarizes the terms of your mortgage loan, including the annual percentage rate and recision period.
- Mortgage and Note. Spell out the legal terms of your mortgage obligation and the agreed upon repayment terms.
- Deed. Transfers ownership to you.
- Affidavits. Binding statement by either party. For example, the seller will often sign and affidavit stating that they have not incurred any liens.
- Riders. They are amendments to the sales contract that affect your rights. Example: the sellers won't move out until two weeks after closing but will pay rent to the buyer(s) during that period.
- Insurance Policies. Provide a record and proof of your coverage.