Everything You Need to Know About Your Closing Day

Closing on your home is the moment when you will become the official homeowners of your new home. But, as first-time homeowners, do you know everything that will be expected of you at your date of closing? We believe that its incredibly important for you come to your closing meeting prepared. Not coming fully prepared or not knowing what you need for your closing date, could have many negative effects on the home buying process. That’s why today, we want to share with you everything you’ll need to know about the closing process. We hope that this helps smooth your transition into homeownership.

Your Closing Day Checklist

There are certain things that you, as the home buyer, are responsible for bringing to the closing day. Double check before you go to your closing that you have everything you need to bring.

Bring the following things to your closing date:

• Photo identification
• A cashiers check with the amount of your down payment
• Your real estate agent
• Proof of insurance

Will you get your keys at your closing?

Every closing is different. It is entirely possible that you could get your keys on closing day. However, for many people, they will get their keys on a different day, as negotiated in the contract. Make sure that you speak with your real estate agent if you have specific questions about getting the keys to your new home.

What papers will you sign

On the day of your closing, it might seem like you are signing a ton of legal documents. (That’s because you will be!) But don’t be intimidated by the amount of paperwork. You’ve made it this far in the process and you are almost done!

We believe that it’s important for our clients to understand what papers they are signing. We never want you to feel confused in the process. As a good rule of thumb, if you’re signing it, you should know what it is!

Below are some of the major documents you will be responsible for signing at your closing.

• Mortgage: This document states that you are putting your home up as collateral for the amount of money you have borrowed from the bank. Yes- just like in Monopoly!
• Promissory Note: This document states that you promise to pay back the total amount of money you have borrowed in your loan.
• Truth in Lending: This document outlines your interest rate, as well as the total cost of your over its lifetime. We always advise our clients to take careful note when signing this and to understand what percentage you’ll be paying in your interest.
• Monthly Payment Letter: This document is basically what it sounds like, an outline of all of your payments for one month. It is a breakdown of your interest, taxes, insurance, and any other payments associated with your home mortgage.

Expert Times for Closing Day

• Give yourself lots of time. If you are coming from work, make sure that you have blocked off a significant amount of time. The length of your closing time can vary and is impossible to predict. Rushing through your closing is never a good idea. Go ahead, just take the afternoon off and celebrate afterward!
• Speak up + ask questions. Don’t feel like you can’t ask questions during your closing. Nothing is ever final until you sign the dotted line. If you don’t understand something or if you need more of explanation, just ask.
• Read the information you are given. Make sure that you take the time to actually read the paperwork that you are signing. Rushing through the process and signing paperwork just to get it over with is not a wise idea. Read through each document carefully and understand what you are signing your name on.

If you’re a first-time homebuyer in the West Michigan area, we hope that you will reach out to us. We would love to work with or answer any questions you might have about the home buying process. Please feel free to call or email us today. We can’t wait to meet you and begin this exciting process!