Closing My Mortgage Loan
When preparing to close your mortgage, things can seem a bit hectic. However, when you know what to expect, the process won’t seem so overwhelming. Proper Rate wants your closing to be just what you imagined: a joyous occasion with little or no hiccups.
Closing processes vary slightly depending on the type of transaction, as well as local, state and municipal laws. While the differences might be subtle, it’s always good to know what steps to take when preparing to close. The following are answers to commonly asked questions about closing.
Who will give me bottom-line figures?
Depending on whether your transaction is a purchase or refinance will determine who can provide you with accurate final numbers.
- Purchase: You can receive estimated figures from your mortgage professional, but you’ll need to speak with your local title company or real estate attorney for a final amount. Your title agent or attorney can calculate any property tax proration, credits or additional fees which your mortgage professional does not have on hand.
- Refinance: In most states, you won’t be required to use an attorney to close. In that case, you should speak with your mortgage professional for your bottom-line. If your state requires a title/escrow agent or real estate attorney to close, you’re best advised to speak with your title agent or legal professional for a final amount due or owed to you.
Can I use a personal check to pay for closing costs?
It depends on the amount due and your state laws. Some states will require a certified bank check for any amount, while others may allow personal checks for anything under $1,000. Depending on your state and type of transaction, it’s best to consult with your title agent, attorney or mortgage professional.
When preparing your funds for closing, you must only use funds from an approved account. An approved account is one which your mortgage professional and underwriter have reviewed and approved prior to issuing your clear to close. If funds for closing are drawn from a non-approved account, your closing will be delayed until the underwriter can review the most recent two months bank statements for that account, which can take up to 48 hours.
What do I bring to closing?
Bring a form of photo identification and your check to cover your closing costs and down payment, unless you wired the money.
Where do I go for closing?
- Purchase: The location will be chosen by the seller. It typically takes place at a title company or attorney’s office.
- Refinance: In most states, you can close from the comforts of your home or local coffee shop. However, some states require an attorney or escrow agent to close your loan. If this is the case, you’ll need to discuss a location with your agent or attorney.
What can I expect at closing?
Whether you are purchasing or refinancing, prepare to sign a lot of documents.
- Purchase: While the process varies by state, typically a professional (attorney or closing agent) will explain every document and let you know where to sign. You may need to wait for the lender’s wire to clear—this is your actual loan—then you’ll be handed the keys, congratulated and sent on your way with copies of all the documents.
- Refinance: Depending on local laws, you’ll meet with an agent from the title company who will explain each document you sign. If refinancing your primary residence, your loan will fund once the 3-day right of rescission has expired (on the fourth day). Once the rescission period has expired, you can no longer cancel the loan. If you are refinancing an investment property or second home, your loan will fund on the same day.
Proper preparation and knowing what to expect can help ease some of the stress homeowners experience during the mortgage process. Don’t hesitate to contact your trusted mortgage professional with any questions throughout the process!