Closing on Your Mortgage

Mortgage
Closing on Your Mortgage

Published: November, 2019

Once the Underwriter approves your loan, the closing date will be scheduled. At the closing, you will be expected to pay the closing costs and will have to sign many documents in regards to the purchase of your home. Below are a few things to anticipate.

PAYING THE CLOSING COSTS

Prior to the closing day, your title company, escrow company or attorney will review with you a copy of the Closing Disclosure, a document that provides the final total for your closing costs. You will need to get a certified check in the amount of the closing costs, as well as the down payment. Many sellers do not accept personal checks, so a certified check is recommended.

RECEIVING INSURANCE

Prior to the closing day, you should have applied and received homeowner’s insurance and title insurance, as well as flood insurance if applicable. Most lenders require a Lender’s Title Insurance policy, which protects the amount they lend. An Owner’s Title Insurance policy is optional, if your lender does not require the policy as a condition of the loan. If you choose to purchase Owner’s Title Insurance, you will also need to apply and receive it prior to closing. In addition, if you are planning on paying less than 20% down on the home, you will also be required to have private mortgage insurance. You need to bring proof of insurance with you on the closing day.

SIGNING THE DOCUMENTS

At closing, anticipate having to sign several documents in regards to the purchase of the home – some are required by the lender and others by the Federal and State law. Of all the documents signed, two are most important:

The Promissory Note. This is a document that the buyer must sign as a written promise to repay the loan under the agreed upon terms.

The Mortgage or Deed of Trust. This is a security instrument that you must sign that gives the lending institution a claim against your home in the case you stop paying the monthly payments, also known as defaulting on your home.

TAKING THE KEYS

Once all the documents have been signed and money has been exchanged, you will then receive the keys to your new home!

MAKE MOVING A BREEZE

  • The Moving Boxes: When packing boxes, pack each room one at a time. Label the box with the room name, so that when unpacking, the movers will know the appropriate room to place the box.
  • Schedule a Moving Company: If you are going to hire a moving company, schedule their service ahead of time to ensure that they are not full for the day. Make sure to communicate the exact time you desire for the furniture and boxes to arrive at the home. If you are planning on moving yourself, make sure to line up necessary moving equipment and ask others to help. Contact people ahead of time and make sure to have plenty of water and snacks on hand to keep them motivated throughout the day.
  • Clean Your New Home: A couple of days before moving in, clean your new home, top to bottom. If you are already overwhelmed with packing, consider hiring a professional cleaning service.
  • Establish a Plan: Prior to moving in, it is helpful to plan where the furniture will be placed in each room. Then, when the movers arrive, you can tell them exactly where each piece should go – saving you time and energy.
  • Inspect Your New Home: Take the time to inspect your new home and make sure all appliances and utilities are working, before your furniture and other belongings arrive. If you find a problem, go ahead and set up a time for it to be resolved.

DECORATING TIPS

  • Use Similar Colors: At some point while owning your home, you will probably get the urge to rearrange or redecorate. By using a similar color scheme throughout the whole house, redecorating is easy and will not cost you a dime!
  • Use Plants and Flowers: It is always nice to have some of the outdoors inside. By bringing in fresh plants and flowers, you can create a pleasant and cheerful atmosphere in your home.
  • Create a Focal Point: When decorating a room, establish a focal point, which can be an area or object that will grab your attention when walking into the room. It can be something as elaborate as a fireplace with a beautiful piece of art hanging above or something as simple as a cluster of candles placed on your coffee table.
  • Add Pattern: Spice things up by using patterns. Many people think you can only use one pattern in a room, but several patterns can be used as long as they have one similar element in common, such as a color.
  • Do It Yourself: By now, you have realized that decorating can become expensive, but consider doing things yourself to cut down the cost. Create your own art, assemble a gallery of photos or create your own head board.

BECOME PART OF THE COMMUNITY

  • Host a Housewarming Party: A housewarming party is a great time to get everyone together and celebrate your home buying success.
  • Volunteer: Volunteering at a local organization in your community provides you with an easy way to make friends while making a difference.
  • Join an Organization: Joining a club or local place of worship opens up the door for making many connections.
  • Support Local Businesses: Enjoy visiting local restaurants and shops to learn about your community, and support your new neighbors.


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