Do You Need a Mortgage Closing Checklist?
August 28, 2023
Do you need a mortgage closing checklist? According to the Consumer Financial Protection Bureau (CFPB) experts, the answer is YES. You DO need a closing checklist. Why?
It’s too easy to overlook critical details as you get closer to closing day. It’s also easy for first-time home buyers to miss details because they aren’t experienced with home loans. A closing checklist can help you keep all those details in one place so you can refer back to them if needed.
What Your Closing Checklist Reminds You to Think About
The very first thing your closing checklist should tell you? Who will conduct your closing, where it will be, and when it is scheduled to happen.
You should also learn how much you will need to pay at closing and, more importantly, how that payment may be made. A closing checklist will also remind you about the following documents needed for your closing date:
Document Review
One very important part of the closing process on your closing checklist, according to the CFPB? Scheduling yourself enough time to review the mortgage closing documents.
CFPB advises, "Set aside enough time to carefully review the documents for errors and to make sure you have a clear understanding of the loan terms."
Comparing Your Costs With the Closing Disclosure
Be sure to do the numbers. Compare your Closing Disclosure with the Loan Estimate you received to ensure these numbers aren’t mismatched. CFPB advises, "Look at the table on the
top of page three of your Closing Disclosure. By law, only certain costs can change."
Arranging Payment
Your payments at closing may be required to be made via wire transfer or with cashier’s checks. Don’t get caught off guard because of the payment issue. Ask your lender early how you are expected to pay and how long it takes to arrange a cashier’s check or wire transfer.
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RELATED VIDEOS:
Here's the Scoop on Conventional Loans
When Do You Need a Cosigner?
Analyzing Your Debt Ratio
It’s too easy to overlook critical details as you get closer to closing day. It’s also easy for first-time home buyers to miss details because they aren’t experienced with home loans. A closing checklist can help you keep all those details in one place so you can refer back to them if needed.
What Your Closing Checklist Reminds You to Think About
The very first thing your closing checklist should tell you? Who will conduct your closing, where it will be, and when it is scheduled to happen.
You should also learn how much you will need to pay at closing and, more importantly, how that payment may be made. A closing checklist will also remind you about the following documents needed for your closing date:
- Closing Disclosure
- Promissory Note
- Mortgage / Security Instrument / Deed of Trust
- Deed (purchase only)
- Right to Cancel (refinance only)
Document Review
One very important part of the closing process on your closing checklist, according to the CFPB? Scheduling yourself enough time to review the mortgage closing documents.
CFPB advises, "Set aside enough time to carefully review the documents for errors and to make sure you have a clear understanding of the loan terms."
Comparing Your Costs With the Closing Disclosure
Be sure to do the numbers. Compare your Closing Disclosure with the Loan Estimate you received to ensure these numbers aren’t mismatched. CFPB advises, "Look at the table on the
top of page three of your Closing Disclosure. By law, only certain costs can change."
Arranging Payment
Your payments at closing may be required to be made via wire transfer or with cashier’s checks. Don’t get caught off guard because of the payment issue. Ask your lender early how you are expected to pay and how long it takes to arrange a cashier’s check or wire transfer.
------------------------------
RELATED VIDEOS:
Here's the Scoop on Conventional Loans
When Do You Need a Cosigner?
Analyzing Your Debt Ratio
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