Closing is the final step in the homebuying process. At the closing, you will settle all the financial details associated with the purchase and receive ownership to your new home.
Depending on the type of contract agreed upon and other minor variations in the closing process, there may be additional items and documents required and reviewed. But the following items are typically finalized at the closing:
The loan papers
The title or deed
Down payment and closing costs
Closing is your last opportunity to disagree with and change any one of the items involved. If you’re working with a professional agent, he or she will go over all the closing details with you. Make certain you are prepared, so that no big surprises will catch you off-guard.
You are required to address the following items at the time of closing:
Homeowner’s Insurance Policy:
Much like buying a car, you must secure an insurance policy prior to taking ownership of the home.
Settlement Statement: The Settlement Statement is an itemized list of actual closing costs. The Settlement Statement is usually not available until 24-48 hours prior to the closing date.
Certified Funds or Cashiers Check: These funds will cover the costs disclosed on the Settlement Statement.
Congratulations! You are now a homeowner.