You shopped for a home, decided to make an offer, entered negotiations, had your offer accepted, and now you are ready to start the closing process. So, what happens next?
Once your loan is approved, you
will be ready to take the final step that will lead to the door of your new
home.
Many home buyers are intimidated
by the closing process, but it's not as complicated as you may think. In fact, finding the right home is much more
difficult than closing the deal.
Making It Official
The closing process begins with
the borrower and lender meeting in the presence of a notary public. This is a person who is authorized to
oversee, create or certify contracts, deeds and other legal documents. At the conclusion of the signing, the notary
public will provide their stamp and signature, which certifies the
identification of everyone present and the signatures on the loan application.
Handing Over The Cash
When you meet with the lender to
close the loan, you will be required to produce your down payment and, if
required, the closing costs. Ask your
lender about acceptable payment methods, which may include a cashier's check or
other certified funds. If you have an
account with the lender, a personal check may be accepted in some
circumstances.
Review The Loan Documents
At closing, this will be your
final opportunity to review the loan documents. You should make sure that everything is accurate and as promised,
including the interest rates and loan term.
It's also important that you confirm that the names and addresses are
correct, along with other important information relating to the loan. If anything is inaccurate, now is the time
to make changes. Never sign the loan documents
until everything is perfect.
Sign Here, Please
Once everything is verified and
the loan documents are approved by both you and the lender, it's time to sign
on the dotted line. Believe it or not,
this is one of the most nervous times for a homebuyer. If you've chosen the right home and are
comfortable with your loan, however, it can also be one of the most
exciting. Once the documents are
signed, the notary public will affix his/her stamp and signature.
It's A Done Deal
The final step in the closing
process is a simple handshake. Most
lenders and homebuyers will extend their hands and, with a smile, the person
who was just a homebuyer is now a homeowner.
Now that's something to shake on!
With the keys to your abode now firmly in hand, it's time to get moving
and turn your new house into a home.
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