Closing Checklist

Closing Checklist

The closing checklist outlines essential tasks, fees, information, and disclosures that must be completed before the title of the property is transferred to you. This checklist is a valuable tool for buyers, helping to ensure that the closing process goes smoothly.

As the buyer and borrower, you will need to address items on your checklist that are required by your lender, the seller, and the title company. Key components include:

  • Identification: All parties involved in the closing must present valid identification.
  • Insurance: Securing homeowner’s insurance is necessary before closing on the property, ensuring coverage in case of damage.
  • Proof of Title Insurance: You must obtain and pay for title insurance, which protects against any previous claims or liens on the property.
  • Closing Funds: Ensure you bring all required funds, either in the form of a cashier’s check or as an electronic wire transfer.

 

It’s advisable to discuss the items on your checklist with your realtor to ensure that nothing is overlooked. This will give you peace of mind, knowing that after the closing settlement, you will be able to move into your new home.

Pre-Approval

Getting pre-approved boosts your credibility as a buyer since a lender certifies you’re likely to qualify for a mortgage based on a preliminary review.

Loan Balance

Your loan balance is the amount you still owe on the original mortgage. Part of your monthly payments goes towards reducing this balance.

First-Time Homebuyer

U.S. Department of Housing and Urban Development (HUD) sets criteria to define first-time homebuyers. Helps lenders identify and allows to track their numbers.

Borrower

A mortgage borrower is a person who gets a loan to buy a home. By borrowing money, they promise to pay it back fully and on time, including interest.

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