Closing the Deal: What Home Buyers Can Expect 

You've picked that perfect home out of the storm of listings.  You're happy with your negotiated deal, and you've secured a mortgage.  Now coming to the end of the line, of the home-buying process.  Idaho home closing day. The time has come, there's just one more crucial step to follow: the home closing. This is the day when you meet with the title and escrow and make the transaction official!

To make sure you're completely prepared, here's what to expect from the closing process..

Step No. 1: How to prepare for your closing appointment

Review your closing disclosure form:

One of the best ways to prepare is to thoroughly review your HUD-1 settlement statement, if you've secured a home loan.  This can help a buyers understand the terms of their specific loan.

The HUD-1 settlement statement will outline your exact mortgage payment, a loan's terms.  Such as the interest rate, length of term and additional fees you'll pay, called closing costs.  Closing costs can add up to 2% to 7% of the home's price.  Compare your HUD-1 statement to the estimate your lender gave you at the beginning; make sure they're similar and ask your lender to explain any discrepancies you've found.  You will receive your HUD-1 statement at least three days before your closing date so that you have plenty of time to look it over. 

Doing a final walk-through of the home:

A buyer's contract will usually allow for a walk-through of the home 24 hrs before the closing. You'll want to make sure the previous owner has vacated, unless you’ve allowed a rent-back agreement. Rent Backs happen when the previous owners pay a negotiated amount of rent for a set period of time, before they move out.  Also, you'll want to make sure the home is in the condition it was agreed upon.  Certify all seller agreed repairs that the sellers agreed were completed to the satisfaction of the contract.

If any issues arise during your final walk-through, bring it up with your Realtor as soon as possible.  Don't panic; at worst you can simply delay the closing until it's resolved.

Step No. 2: What to bring to your closing appointment

All your paperwork:

You'll want to bring proof of homeowners insurance if your lender hasn't already received it.  Additionally, bring any paperwork requested by the lender required to fulfill your loan. A government-issued photo ID. will be required for verification.  Also, newlyweds who have recently changed their name will need their IDs to match the name that will appear on the property's title and mortgage.

Your down payment:

You should already know from your disclosure form exactly how much you'll need to bring for your down payment and closing costs.  Personal checks are not a verified form of payment, so be sure to ask before closing whether you should wire transfer your funds or if you'll need to bring a cashier's check.  Never authorize a wire transfer via text, email or any other insecure communication.  Always call the Title Company directly to set up a wire transfer.  However bring your personal checkbook to closing, since it's generally ok to pay small fees and can come in handy in case any unforeseen expenses crop up.

Step No. 3: What to expect at your closing appointment

An assortment of people:

You can usually expect to see your Realtor, a representative from the title company and sometimes a representative from the bank or lender where you got your loan.  Your signing appointment will usually be held at a time and day that is acceptable for you and often takes place at the title companies offices.  Always verify the closing appointment details with your Realtor.

Title clearance:

Before you can own or "take title" to your new home, most lenders will require a title search of public property records to ensure there aren't any liens or issues with transferring the property into your name (which is rare, but if something does crop up, it's better to know that upfront).  This process is completed before your closing signing appointment.

Signing your name a lot:

You'll be putting your John Hancock on a pile of legal documents (so be prepared for a mild hand cramp if you're not used to writing in cursive).  Make sure to grab some of the free pens, paper pads and other swag the title company may offer you!

Watch for curveballs:

​Be prepared for things to go awry at the closing, like someone getting stuck in traffic, a document is missing or incorrect, or a name may be misspelled. But don't stress, title companies can usually fix these small issues on site.  You may not want to schedule any other activities or appointments two hours after the closing is supposed to start in case your closing runs a bit late.

Funding and recording:

​Note, you will not receive keys and garage door openers to your new home until the home has "funded and recorded", which simply means the home is not yours until the bank or lender has paid or funded the other party for the home and that the home has officially been recorded with your county's recording office.  This process can take up to 24 hours to complete, depending on the time of day you signed, if all parties have finished signing and how fast your lender can complete their process for funding.

If all goes well (as it usually does), you will eventually leave your closing appointment with a stack of documents maybe even a USB drive with your documents electronically on file (which you should save for records) and possibly the keys to your new home (finally!).