Closing on your home is exciting whether you are closing on your first home or you are a seasoned homeowner. This process is the final step to making your dream a reality. Understanding this process can help to move it along, because sometimes it is a long process. There are many ways in which you can plan for this and here are some tips on how to close on your home.
Closing: The Paperwork
There are many pages which will have to be read and signed when you close on your home. In order to make this process go smoother, be ready for all the dotted lines which will come your way. Before you get to the closing meeting, here are some of the items of paperwork which you will need to bring with you.
• A Certified Cashier’s Check for Closing Costs
• Proof of Homeowners Insurance
• Photo ID
In addition to the documents which you will need to bring with you, there are many documents which you will need to sign, including:
• Abstract of Title: A list of all the documents which are related to the title.
• Certificate of Occupancy: A document used for new home ownership.
• Deed of Trust: Also known as the mortgage or the lien on the property.
• HUD-1 Settlement Form: Itemized list of the buyer and the seller closing costs.
• Monthly Payment Letter: Monthly mortgage payment broken down by interest and principal over time.
• Promissory Note: A contract with the bank for the amount owed.
• Proration Papers: Breakdown of what the buyer is responsible for and what the seller is responsible for. This can range from leaving the appliances to splitting the fee when the last bills come from the utility companies. Everything here should be very clear.
• Statement of Information: A document which confirms your identity.
• Truth in Lending Statement: A Regulation Z form which shows all of the finance charges, interest rates, annual percentage rates and other charges form the bank.
• Warranty Deed: This is the title which makes you the new owner.
Closing: The Day Of
When the closing finally comes, it will be a big day. Allow plenty of time for this process to take place. In the best scenario, you should be able to take off the entire day. Do not plan other meetings, do not schedule work and do not have the moving trucks scheduled for closing day.
One of the best tips on how to close on your home is to have a good breakfast. You want to be wide awake and ready to get through hours of reading paperwork. Take notes on anything which does not make sense and ask questions.
Tips on How to Close on Your Home
Closing is exciting. Be ready by knowing what paperwork you should have, knowing what to expect when you walk into your new home for the first time, and knowing that closing day will be long. After closing you will be holding the keys to your home.