You’ve done the legwork and gotten preapproved for your mortgage loan — great job! Now you make an offer on a house, it gets accepted, and the closing process begins. But what exactly does that mean? Here are the answers to the most important questions about closing on a home.
1. How Long Does Closing Take?
First, we look at how long it takes for your actual mortgage application to get approved, which is usually between 30 and 45 days — although in 2021, this timeframe has increased to around 51 days for conventional loans.
Next, there’s the signing of documentation on closing day. This can occur either in person, online, or via mail, which can all affect the amount of time paperwork takes to complete. In-person signing typically takes an hour to an hour and a half.
2. What Actually Happens During Closing?
In the actual process of closing, you as a buyer must read and sign legal documents from your lender, which will transfer ownership of the new home to you. Upon completion, the seller will get the proceeds of the loan from your lender. These documents include mortgage papers (deed of trust), a promissory note, escrow forms, and a right-to-cancel form, among other various disclaimers, disclosures, and government fillings.
3. Will I Have to Pay Anything at Closing?
Yes. During the week before closing, you will receive a disclosure outlining your closing costs (which are also explained in the loan estimate that follows your mortgage application). Specifically, expect to pay prorated property taxes, lender origination fees, third-party fees, interest due before your first mortgage payment, title insurance, and any applicable HOA fees.
4. What Should I Take to Closing?
Your Surterre agent, attorney, and/or lender can help you with the exact items you will need to furnish at closing, but typically you’ll need the following: identification (driver’s license, etc.), your closing disclosure to check against the documentation you’ll be signing, and a cashier’s check for closing costs if you haven’t already paid by wire transfer (in which case you’ll need to show a receipt).
Closing doesn’t have to be a stressful process; working with a knowledgeable Surterre agent will give you peace of mind and streamline the transaction. To get started, visit SurterreProperties.com today.
Source: Residential Realty Today
