Understanding The Closing
Process
Once your loan is
approved, you will be ready to take the final step that will lead to the door
of your new home. Many homebuyers are
intimidated by the closing process, but it's not as complicated as you may
think. In fact, finding the right home
is much more difficult than closing the deal.
Making It Official
The closing process begins
with the borrower and lender meeting in the presence of a notary public. This is a person who is authorized to
oversee, create or certify contracts, deeds and other legal documents. At the conclusion of the signing, the notary
public will provide their stamp and signature, which certifies the
identification of everyone present and the signatures on the loan application.
Handing Over The Cash
When you meet with the
lender to close the loan, you will be required to produce your down payment
and, if required, the closing costs. Ask
your lender about acceptable payment methods, which may include a cashier's
check or other certified funds. If you
have an account with the lender, a personal check may be accepted in some
circumstances.
Review The Loan Documents
At closing, this will be
your final opportunity to review the loan documents. You should make sure that everything is
accurate and as promised, including the interest rates and loan term. It's also important that you confirm that the
names and addresses are correct, along with other important information
relating to the loan. If anything is
inaccurate, now is the time to make changes.
Never sign the loan documents until everything is perfect.
Sign Here, Please
Once everything is
verified and the loan documents are approved by both you and the lender, it's
time to sign on the dotted line. Believe
it or not, this is one of the most nervous times for a homebuyer. If you've chosen the right home and are
comfortable with your loan, however, it can also be one of the most
exciting. Once the documents are signed,
the notary public will affix his/her stamp and signature.
It's A Done Deal
The final step in the
closing process is a simple handshake.
Most lenders and homebuyers will extend their hands and, with a smile,
the person who was just a homebuyer is now a homeowner. Now that's something to shake on! With the keys to your abode now firmly in
hand, it's time to get moving and turn your new house into a home.