Mattie Wood

Buying A Home – What Happens on Closing Day?

Buying A Home: 7 Step Series

We’ve made it through our 7-step series on the home buying process. If you are reading this article, then you may already be in the closing process or you are still getting prepared to buy your first home. In either situation, it’s important to know what happens on closing day.

In case you missed the first 6 steps, here is a link to each previous post on the Moreira Team Blog:

Step 1: Getting Your Finances in Order

Step 2: Hiring a Realtor®

Step 3: Getting Preapproved for Your Home Loan

Step 4: Are You Ready to Start Your Home Search?

Step 5: How to Make Your Home Purchase Offer More Attractive

Step 6: Understanding the Home Inspection and Appraisal Processes

What Exactly Does “Closing Day” Represent?

Now, we are at that point where you have completed the first 6 steps of the home buying process and you are approaching closing day. What does the closing really mean and what should you expect when this day finally comes?

During the closing process, your mortgage lender will be finalizing the underwriting for your home loan. You should have already been preapproved for your mortgage (Step 3, very important!) and things go smoothly with the home inspection(s) and appraisal (Step 6). If not preapproved when you start the closing process, you may experience additional delays or roadblocks as your financial situation gets reviewed by the lender.

Once the lender has officially approved the loan, the closing day is scheduled. This is the day when you sign all the final documents of the contract to close the transaction. It’s also the day when you get the keys to your new home!

Buying A Home – Documents Required Prior to Closing Day

A few days before closing day, you should receive the closing documents for review. There will be many important details included within these documents, including:

Mortgage Loan Terms (interest rate, monthly payments, down payment, etc.)

Closing Costs (inspection Fees, title Fees, Realtor® commissions, etc.)

Prorated Property Taxes

Prepaid Homeowners Insurance Fees

Homeowner’s Association Dues (if applicable)

When you are buying your first home, you will likely have a lot of questions when looking over these documents. Please consult with your buyer’s agent and mortgage representative. You hired them to help and provide professional guidance, so utilize their expertise when you need it most. Don’t go into closing day confused about what your costs and responsibilities are.