Closing the Deal

It’s time to get the keys to your new home. What next?

Finally, it’s closing day—the day when all your hard work pays off and you become the owner of your new home. You have just a few more steps before you walk away with the keys to your home.

What to Expect at Closing

The closing process can vary from state to state.  In states with ‘round table’ closings, you’ll meet at the office of a settlement agent or attorney to sign documents and complete your purchase.  In ‘escrow’ states, an escrow agent will collect documents from the buyer, seller, and lender and make sure the terms of the transaction are carried out.

You’ve invested a great deal of time in preparing your loan application. Make sure you review all the documents at this time and be sure you understand them. There’s a lot of information—rest assured your closing agent can answer any questions you might have.

What You’ll Receive at Closing

  • A HUD-1 final settlement statement. This document itemizes all of the funds and costs paid by the buyer and seller either at or before closing. This document will show the loan amount, interest rate, loan term, origination fees, title insurance, deposits for property insurance and taxes, homeowners’ insurance and any other fees. If you ask, you have a right to review the HUD-1 a day in advance of closing.
  • The Truth-in-Lending (TIL) disclosure. This document provides important information about your loan. It includes the APR, finance charge, amount financed, total of payments, and payment schedule.
  • Your deed of trust or mortgage. The deed contains the information about your purchase that will be filed as a public record.
  • The promissory note. The note is your binding legal agreement to make payments to Chase according to the terms of your mortgage.

Creation of Your Escrow Account

If you’re creating an escrow account to pay your property taxes, homeowners’ insurance, and if required flood insurance, those arrangements will be finalized at this time. Going forward, the balance of your escrow account will be included in your mortgage statement. It will show payments for taxes and insurance.

Closing Costs

You should bring a certified check for the closing costs and down payment. Your lender or closing agent should give you the exact figure a day or two prior.

The Keys to Your New Home

Congratulations. Once you’ve signed all of the documents, you’ll get the keys to your new home.