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  • Writer's pictureChad Eliason

What To Expect During The Process Of Closing A Home

So, you’ve found the perfect place to call home, and your offer has been accepted, what is next? As a buyer, it is important to understand what you are obligated to do leading up to closing time to ensure a smooth and successful transaction. Here are some steps you can expect to happen:


· Finalizing your Mortgage – if you haven’t done so already, you’ll meet with your mortgage broker or local bank branch to sign the final mortgage documents for your purchase. Take your time to review the mortgage terms, rate and annual allowances.


· Signing the Title - This is a legal document executed by your real estate lawyer or notary that transfers property ownership from the existing seller to you, the buyer. Ensure that you take the time to carefully reviewed the title search results and property title prior to signing to ensure accuracy and that it captures the correct terms of the sale.


· Reviewing the Closing Disclosure – An outline of the final terms and costs that are associated with the home purchase. It will include the purchase price, the exact figure you need for closing costs and any additional legal or disbursement fees. As a buyer, you will need to review and sign to acknowledge your understanding of the sale terms and agreement of the final costs.


· Settle Up on Your Closing Costs – It’s time to reconcile any outstanding costs you have agreed to pay, before the final closing can take place. Be sure that you are prepared for all of the costs associated to closing a home – the most common are:

  • The remainder of your down payment (and proof of your mortgage funds if the property is financed.)

  • Property appraisal fees from your lender

  • Land transfer taxes, unless you qualify for an exemption

  • Real estate lawyer or notary costs

  • Interest and tax adjustments

  • Applicable taxes

  • Homeowner’s insurance premiums

  • Professional moving expenses

  • Utility and service set-up charges


· Confirm Home Insurance – If you’re carrying a mortgage on the new property you’ll be obligated to maintain an active home insurance policy that protects your liability, the structure of the home and its contents. Your insurer will list your lender as a loss payee to ensure the outstanding mortgage on the property is noted if ever a claim arises.


Each home purchase transaction is unique and may have other tasks to complete to get to closing day. Be sure you are consulting with your mortgage broker, real estate agent and legal professional in to ensure you have completed all of your assigned duties and don’t be afraid to ask questions along the way!


If you are looking for a professional and trusted mortgage broker, do not hesitate to connect with me, I’d love to help you navigate your financial needs!


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