When you purchase your first home, you may wonder what will happen at the closing. This is when you usually sign all the paperwork for your new house.
According to Bankrate.com, the closing does not take place as soon as the seller accepts your offer. It may take one to two months to complete the process. It takes this long because both you and the seller have to get all the paperwork in order. This time span also allows you to resolve any issues that might come up, such as a title lien or a necessary repair to the home.
The process
Most of the closing process consists of signing documents. You usually have to sign the mortgage and the promissory note. The promissory note is important because it specifies where you will send your mortgage payments, as well as the due date of the payments.
You should read these documents carefully so you understand the terms you are agreeing to. You also will pay the closing costs such as the title search and your credit check. Additionally, the closing process will likely include a walkthrough of the house.
Essential items
You will need to bring all the paperwork to the closing. The company you work with may want to see two forms of identification. You should learn in advance what ID you will need to provide.
At the closing, you usually receive documents proving that you own the house. These include the deed of trust and the initial escrow statement. You will also receive a certificate of occupancy if you purchase new construction.
