Closing Day Meetings

The Closing Meeting -- Step by Step
On closing day, many of the people involved with the purchase of your home will be at the closing meeting. The whole closing process takes about an hour and is usually held at the closing agent's office. If you live in an area of the country where there is no formal closing meeting, an escrow agent will process the paperwork, arrange for the documents to be signed, and collect and disburse the required funds.

Here's a quick list of what to expect...

1. The closing agent will review the HUD-1 Settlement Statement with you and the seller and answer any questions. Both you and the seller will sign the settlement sheet.
2. The closing agent will ask you to sign the other loan documents, such as the note and Truth-in-Lending Statement. Evidence of required insurance and inspections will also be presented -- if it wasn't previously given to the lender.
3. If everyone agrees the papers are in order, you and the seller will submit a certified check or cashier's check to cover the closing costs and the balance of funds due. The check from the lender covering the mortgage amount is then submitted to the closing agent. If the lender will be paying your annual property taxes and homeowners insurance for you, a new escrow account is established at this point.
4. You should receive the original or copies of the HUD-1 Settlement Statement, Truth-in-Lending Statement, mortgage note, affidavits and the deed.
5. You then receive the keys to your home.
6. After the meeting, the closing agent officially records the mortgage and deed at your local government clerk's office or registrar of deeds. This legal transfer of the property may take a few days. The closing agent usually will not disburse the funds to everyone who is owed money from the sale (including the seller, real estate professionals, and the lender) until the transaction has been recorded. After the deed has been officially recorded, you formally become the owner of your new home. Congratulations!

Closing Day Checklist
Your primary role at the closing meeting is to review and sign the documents related to the mortgage loan and to pay the closing costs as outlined in your HUD-1 Settlement Statement. Though closing processes vary from state to state and city to city, certain activities are standard. Here's a quick list of what to do...

• Be prepared to sign a number of papers. If you have a favorite pen, bring it!
• Bring along a certified check or cashier's check for the exact amount specified by the title agent on your HUD-1 Settlement Statement.
• Bring a key-ring with extra room for your new home keys!

Post-Closing Activities
When your closing is completed, you will need to store any paperwork you received at the closing in a safe place. Remember to keep a copy of every document you signed, including you're:

• HUD-1 Settlement Statement
• Truth-in-Lending Statement
• Mortgage Note
• Affidavits
• Warranty Deed

When you file your taxes next, it may be useful to review a copy of the HUD-1 Settlement form because it lists the real estate taxes and loan discount points you paid at the closing. These items may be tax deductible! (Ask your CPA.) Also, make sure you keep all homeowners insurance and title insurance records. You may need to access them if you discover a flaw in the title after you've purchased your home.

That's it! You've reviewed the steps it takes to buy a home, find a lender, and choose the mortgage that's right for you. While there's a lot to the process, remember that your local community bank is there for you every step of the way. If you care to, use our website calculators to help evaluate your finances. And you're welcome to continue to use your personal account on this site. Here's to you finding the home of your dreams!