Closing Day and After
You are under contract, the inspection and appraisal are behind you, and the loan is moving. Part 4 covers the final stretch, from your last review of the numbers to the day you get your keys and the first weeks after.
Your Closing Disclosure
The Closing Disclosure is the form that lists your final loan terms, monthly payment and the costs you pay at closing. By law, you must receive it at least three business days before closing, according to the CFPB. Use that time. The CFPB recommends comparing it with your most recent Loan Estimate, checking items such as:
- Loan amount, loan type and loan term
- Interest rate and estimated monthly payment
- Closing costs and cash to close
- Whether there is a prepayment penalty
- Any seller credit, which should match your agreement with the seller
Comparing the annual percentage rate (APR) on both forms is a quick way to see whether costs have gone up. If something looks different, ask your lender why. Your lender is the right person for questions about loan terms.
Closing costs
Closing costs are the fees to complete the loan and the sale. The CFPB explains that some fees cannot increase at all unless your loan or financial information changes, others can rise by up to 10 percent, and another group has no limit. Ask your lender to walk you through which are which. Also ask how much cash you should bring and in what form. Your earnest money deposit is generally credited toward what you owe, and the Closing Disclosure shows how.
Review documents ahead of time
The CFPB suggests asking in advance for the promissory note, the mortgage or deed of trust and the deed, so you are not reading them for the first time at the table. It also mentions that you might consider a real estate attorney, for instance to confirm the deed gives you the type of ownership you want when buying with someone else. Signing is the final step, and once you sign you are responsible for the loan, so take your time.
Watch for wire fraud
The CFPB warns about scammers who pose as your real estate or settlement agent and suggest last-minute changes to wiring instructions. Verify any change by calling a phone number you already know to be correct before sending funds.
The final walk-through
Shortly before closing, you will usually have a chance to walk the home again. This is not a second inspection. It is a chance to confirm that the home is in the condition the contract describes. Plan to:
- Confirm any agreed repairs were completed.
- Check that items that were to stay are still there.
- Run the appliances, faucets and lights, and test the heating and cooling.
- Look for new damage since your last visit.
- Make sure the home has been left clean and the seller's belongings are out, if the contract calls for it.
If something is wrong, tell me right away so we can address it before closing.
Closing day: what to bring
Your closing agent or lender will tell you exactly what to bring. In general, expect to bring:
- A government-issued photo ID
- The funds due at closing, in the form your closing agent specifies
- Your Closing Disclosure and any documents you were asked to sign or bring
Ask your lender or closing agent a few days ahead so there are no surprises. Getting there with questions already answered makes the signing smoother.
After you get the keys
Once the keys are yours, a few steps help you settle in:
- Change the locks and codes on exterior doors and garage openers.
- Put utilities in your name and set up trash service and internet.
- Update your address with your bank, your employer and the post office.
- Store your closing documents in a safe place and keep copies you can reach.
- Create a maintenance calendar for filters, gutters and seasonal checks.
If a question comes up about the home or the process after you move in, reach out. I am glad to help point you in the right direction.
This guide is general information, not legal, tax or lending advice.
Questions about your situation? Call me at (865) 672-9009 or send a message.