A Complete Buyer’s Checklist: Everything You Need At Closing

The process of purchasing a home can be hectic and time-consuming. There are several steps involved before closing the deal. The first step is to carry out an inspection. Any issues discovered by the inspector must be resolved before moving to the next step.

The day of closing the deal can be stressful for many people. This is the point when you are supposed to sign the crucial documents that officially transfer the ownership of your home. Some of the costs associated with this final stage include lending fees, closing costs and any taxes that are due.

While the process may seem stressful, you can make your work easy by putting together all the necessary documents beforehand.

Below is a Quick Checklist of What You Need At Closing Day

1. Photo ID

The title company in charge of your mortgage loan closing will check and verify your identity. They will do this by going through all your identity documents and making copies of each ID presented. It is possible to use a signed U.S. ID card, U.S. driver’s license, or a foreign passport as a photo ID. It is also important to ensure that anyone whose name appears on the mortgage loan provides an approved signed photo ID.

2. Cashier’s Check

You will be required to pay for your property’s down payment, closing costs, property taxes, prepaid interest and insurance before finalizing the deal. This is also referred to as your cash to close. It is the overall amount required to end your mortgage loan. But you can’t just write a personal check to cover all these expenses. You will instead need to present a cashier’s check.

Your title insurer or lender will give the exact amount before closing day. The cashier’s check can be obtained from the bank. The major difference between a personal check and a cashier’s check is that the bank approves that there are adequate funds written on the check.

3. The Closing Disclosure

The closing disclosure is a vital document when applying for a loan. It stipulates the final terms and costs of the mortgage loan. Your lender is supposed to avail of this document to you at least three business days prior to closing the loan. The document comprises the amount of the loan, interest rate, monthly payment, and a breakdown of your monthly or annual payments.

4. Proof of Insurance

Before approving your mortgage loan, your lender will ask you to purchase a homeowner insurance policy. The policy is designed to protect your home against any damage or destruction. The insurance company will be the one to provide money to rebuild or repair your house in case of damage or destruction.

5. Professional Presentation

It is essential to hire a professional to represent you during the closing day. You would want someone who will answer questions confidently and verify all the documents before you sign.

Are you looking for homes for sale in Polk County? Well, getting selling or purchasing a home can be a stressful affair. But you can make the whole process less hectic by preparing early.