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.

Good Faith Estimate

Good Faith Estimate is a document that helps people buying a home giving them basic info about their home loan and an idea of the costs involved in getting it.

Credit Requirements

The FHA sets credit requirements for government-backed home loans. For example, to use the 3.5% down payment option, you need a FICO score of at least 580.

Discount Points

Discount points are upfront fees you pay to lower your mortgage’s interest rate. Each point costs 1% of your loan amount and helps reduce monthly payments.

Property Title

At closing, you receive the property title, confirming your ownership of the home. The title company issues it to show no one else has claims.

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