Prepare for Closing Day
That’s the big day for buyers and sellers. The seller vacates the property per the agreement you negotiated with them, the borrower accepts the keys to the home, and money is transferred out of escrow to deal with mortgage and title fees.
On closing day, you get the deed to the home updated in your name and sign all the other paperwork needed to take possession of the home.
Closing day typically happens within two months of making the deal, but much depends on circumstances. One thing to know well in advance of closing day? Your lender’s preferred procedure for wire transfers, especially where the down payment and closing costs are concerned.
Your lender should share this information with you, and those details should involve guidance on what to do in case there is a question about how to proceed later on.
Scammers may try to fool a borrower into disregarding the lender’s closing day instructions for wire transfers or other methods of rendering the down payment.
Don’t be a victim; obey your lender’s instructions to the letter, and do NOT deviate from them without personally speaking to a representative of the bank that you have contacted through the bank’s central phone number.
Know Your Closing Agent
You want to know the name and contact information of the closing agent well ahead of closing day whenever possible. Contact the agent ahead of time with any questions or to get a list of required documents for closing day.
Your closing agent is likely to recommend you do NOT schedule a moving truck the same day as closing day for a variety of reasons, including the potential that your closing date could be rescheduled along the way, depending on circumstances.
Cash to Close
Most borrowers are told up front they cannot bring cash or checks to closing day. You must deliver payment to the lender in the form your loan officer requires. You won’t be able to make a down payment on an FHA mortgage in cash, and you typically can’t do it with a personal check.
Documents to Bring to Closing Day
You will need a photo ID, proof of required insurance such as homeowners insurance or flood insurance, and your loan documents.
If you need to transfer funds to make a down payment or pay for closing costs, be sure the funds were transferred early enough to be in your account the day before closing day or as early as your lender recommends.
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