How does closing work?

Closing is when you and the seller will sign all remaining documents, money will exchange hands and the home becomes yours. This exchange usually takes place at a title company or lawyer's office.

Before closing, be sure to review all documents and your purchase agreement. You should also do a final walk through of the property. You will want to make sure the seller made all agreed upon repairs and they did not change or remove any other items from the agreement.

After your application is approved, your final paperwork will go to the closing department where they will determine final amounts and payments. The final amount determined will be given to you in order for you to prepare the funds for transfer. Sometimes these funds will need to be a certified check or wired electronically.

When you complete a formal loan application, your loan officer will give you a disclosure package that will include:

A Loan Estimate (LE)
The Loan Estimate is a form that combines the previous Good Faith Estimate and early Truth in Lending disclosures. You will receive the LE no later than three days after submitting your application.

A Closing Disclosure (CD)
The Closing Disclosure paperwork combines the former HUD-1 and final Truth in Lending disclosures. You will receive the CD at least three days before closing.