What Happens on the Closing Date for a Mortgage?

You and your spouse will likely be excited as your mortgage closing date approaches and the home of your dreams is almost within your grasp. As long as you have all of your finances in order, your closing day will be a stress-free one full of simple signings and the all-important turning over of the keys.

Closing Meeting

You are required to attend the closing meeting, and you must bring current identification, such as a driver's license, to prove your identity. Others at this meeting will most likely include the seller of the property (or a representative of that seller if the property is a new build), the real estate agent(s) and attorneys representing both you and the seller. This meeting will likely take place at a title agency or law firm, but it could take place anywhere as long as all the parties are present.

Paperwork Signing

At this meeting, you will sign a seemingly endless mountain of paperwork. This paperwork commits you to the repayment of your mortgage and certifies you as the owner of the property that you purchased. Among this stack of papers, you will find a promissory note, in which you state that you will repay the mortgage faithfully. You will also have to sign both a security and warranty deed, which together legally transfer the house title to your name. To ensure that you are fully aware of the financial terms of your mortgage, you will be required to sign a HUD-1 Settlement Statement, Truth in Lending Statement and Aggregate Escrow Disclosure, all of which contain specifics as to the terms of your particular loan. Although you will likely get writer’s cramp because of the numerous documents you will be expected to sign, you can muddle your way through by remembering that you will be a property owner at the end of the meeting.

Insurance Proof Presentation

You will be required to show evidence that you have taken out insurance on the property before you can sign the closing paperwork. This evidence is required so that the bank knows that its investment has been protected. Take out your policy, and obtain this proof from your insurance agent prior to your closing to ensure that you don’t experience delays.

Paying of Down Payment

If you are paying for part of your property upfront through a down payment, you will be required to present this payment at the time of closing. This payment is generally presented in the form of a cashier’s check, as the amount of your down payment will likely far exceed the limits of your personal checking account balance. Nevertheless, still bring your check book in case the final closing fee figures change slightly. You can use a personal check to make up the small difference. In some cases, you can complete the down payment through a simple fund transfer, if the amount you are paying has been placed in an escrow account.

Receiving the Keys

The part of the closing process that most homebuyers fervently look forward to is the final step of the process itself – the receiving of the keys. After you have crossed all of your t’s and dotted all of your i’s, you will finally get the keys that you have so long dreamed of holding – those to your new nest.

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About the Author

Erin Schreiner is a freelance writer and teacher who holds a bachelor's degree from Bowling Green State University. She has been actively freelancing since 2008. Schreiner previously worked for a London-based freelance firm. Her work appears on eHow, Trails.com and RedEnvelope. She currently teaches writing to middle school students in Ohio and works on her writing craft regularly.