If you’ve made it to mortgage closing, congratulations! This means you’re almost at the finish line of homeownership. But closing can be confusing if you don’t know what to expect. Use this step-by-step guide to prepare for your mortgage closing appointment.
Do Your Research on Closing Costs
Closing costs typically range from 3-6% of the total mortgage loan amount—research typical fees in your state and city so you aren’t surprised. Expect origination charges, appraisal/credit report fees, insurance premiums, taxes, legal fees, and pre-paid interest. Ask for an Estimate of Closing Costs from your lender.
Gather Required Documents
Your lender will list what to bring, such as your driver’s license, insurance information, association fees, and closing costs/down payment funds. Make copies of important paperwork like tax returns and bank statements. Keep documents organized for easy access.
Get a Final Walk-Through Inspection
Schedule a final walk-through of the home 1-2 days before closing to ensure no damage has occurred and the property is vacant. Bring your inspection list and camera to document the home’s condition. Report any concerns to your real estate agent.
Review the Closing Disclosure
Your lender must provide this closing cost summary three business days before closing. Compare the details with your Loan Estimate and ask about any discrepancies. Know what fees are paid upfront versus rolled into the loan.
Sign the Mortgage and Note
These core documents reflect the terms of your loan, like interest rate, monthly payment, and loan amount. Read these carefully before signing. Ask your attorney to clarify anything you don’t understand. Don’t rush through this process.
Bring a Cashier’s Check for Funds Needed
One cashier’s check, payable to the closing/settlement agent, covers your down payment and closing costs. Confirm the required amount with your lender before obtaining the check from your bank.
Get Your Final Homeowner’s Insurance Quote
Provide your insurance quote to the closing agent, but don’t cancel your current policy yet. Final approval is still needed from the lender. Once cleared, you can cancel the old policy and activate the new one.
Understand the Deed Transfer
Review the property deed to ensure your name and loan details are correct. The deed legally transfers home ownership. Don’t leave the closing until the executed deed is handed to you.
Knowing what to expect will give you confidence at your mortgage closing appointment! Bring all required paperwork, follow instructions carefully, and ask questions upfront if anything is unclear before signing.
