After months of hard work and anticipation, closing day is finally within reach. It’s the day you’ve been working toward, and it’s time to officially call that house your home! At Avanti Way Financial, we know that the process can feel overwhelming, but with the right preparation, you can make it through smoothly. Here’s a step-by-step guide to help you navigate closing day and ensure there are no surprises.
Organize Your Closing Documents
First things first: make sure you’re prepared by organizing all necessary documents. Create a checklist of everything you’ll need and their deadlines. Common documents include:
- Closing Disclosure: Details about your loan and closing costs
- Seller’s Disclosure: A document from the seller about the home’s condition
- Title Documents: Ensure the title company has verified the seller’s ownership
- Loan Application: A copy of your original loan application
Confirm that your lender has received all documents and keep track of what’s been submitted to avoid delays.
Review Your Loan Application
Take a close look at your loan application before closing. If anything has changed since you first applied, like a new job or new debts, let your lender know. These changes could affect your loan terms.
Go Over the Seller’s Disclosure
This document reveals any known issues with the home, like structural damage or infestations. If there’s anything concerning, talk to the seller about repairs or price adjustments. Don’t forget to check whether your state requires these disclosures!
Understand the Closing Disclosure
Your lender must provide you with the Closing Disclosure at least three business days before closing day. Review it carefully to ensure it matches the loan estimate. If you notice any discrepancies, address them before signing anything.
Schedule Inspections & Address Repairs
Before closing, schedule necessary inspections—home, pest, and radon. This helps ensure the property is in good condition and free of potential issues. Once inspections are complete, negotiate repairs or credits with the seller if needed.
Select Homeowners Insurance
Lenders typically require proof of homeowners insurance before closing. Shop around for policies that meet your needs and budget, and ensure you have coverage in place before the big day.
Prepare Your Finances
Check your Closing Disclosure for the exact amount you’ll need at closing. Be prepared for expenses like closing costs (typically 3%-6% of the home price), earnest money, and any lender credits or seller concessions. Ensure you have the required funds ready!
Lock in Your Mortgage Rate
If you haven’t already, lock in your mortgage rate with your lender. Rates can fluctuate, so locking yours in ensures you’re protected from increases before closing. Discuss the best time to lock based on current market conditions.
Transfer Funds for Closing
Before closing day, arrange the transfer of funds for your down payment and closing costs. This typically involves a certified or cashier’s check or wire transfer. Confirm all details with your title company or lender to avoid any issues.
Prepare for Closing Day
On closing day, bring the following:
- A valid form of ID (e.g., driver’s license or passport)
- Certified or cashier’s check for closing costs
- Proof of homeowners insurance
- Your Closing Disclosure to compare with final documents
Double-check everything to make sure you don’t forget any important documents or items.
Final Walk-Through
Before signing anything, take a final walk-through of the property. This is your last chance to ensure the home is in the agreed-upon condition and that any required repairs have been completed. If there are any issues, address them with your agent immediately.
How to Avoid Common Roadblocks to Closing
While delays can be out of your control, there are a few things you can do to keep the process on track:
- Be proactive with lender requests: Get documents in quickly to avoid delays.
- Avoid major life changes: Changing jobs or taking on more debt can affect your mortgage approval.
- Beware of scams: Double-check wire transfer details to avoid mortgage fraud.
How Long Does Closing Take?
Closing usually takes 30-45 days from mortgage application to signing the final paperwork, with the actual closing day lasting about 1-2 hours.
The Bottom Line
Closing on a home doesn’t have to be stressful. By staying organized and prepared, you can make the process smoother and more enjoyable. Keep track of documents, communicate with your lender, and stay on top of deadlines—and soon, you’ll be the proud owner of your new home!
Ready to get started? Contact Avanti Way Financial today to explore your mortgage options and take the first step toward homeownership!
