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.

Closing Disclosure

One of the most important documents in the mortgage process. This 5-page form lays out your loan terms, like monthly payments, interest rates, and closing costs

Loan-to-Value Ratio

Loan-to-value (LTV) ratio compares the loan amount to the home’s value. It helps assess the risk of granting a mortgage and influences mortgage insurance rates.

ARM

Adjustable-rate mortgages start with a low, fixed rate for a set time. After, the rate changes based on an index, so your payments may go up or down.

Loan Application

To begin mortgage process, you must fill out and submit a loan application to your lender. This form and documents help assess your eligibility for the mortgage

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