You’ve made it to the last few miles of your buyer’s journey; you’re ready to close on your new home! And, as you prepare for the closing, you ask yourself, “How much money will I need to bring to the closing? Can it be a personal check? What documents will I be signing? And is there anything else I need to bring with me?"
There Are Three Main Items to Review and Sign During Closing
A deed of trust or mortgage - This document puts a lien on your property as collateral for your loan.
The promissory note - A legal agreement to pay the lender, including when you will make your payments and where you will send them.
A Closing Disclosure - An itemized list of your final credits and charges, based on the terms of the contract.
How Will I Bring Funds to a Close and How Much?
If you are financing the transaction with a mortgage, the lender is required to provide you with a Closing Disclosure (CD) at least three days prior to closing. The CD will provide the final amount of funds needed to close. If you have a cash purchase, the closing attorney will provide the Settlement Statement which will similarly provide the final amount of funds to bring to the closing table.
You can bring the final funds by a certified bank check or send them via a wire transfer.
If bringing a certified bank check, your agent or attorney will provide you with instructions as to who the check should be made payable to. Typically, this certified bank check is made out for an amount just over what is needed to close. Your attorney will then cut you a check for the difference.
If wiring the proceeds, you should obtain the wiring instructions from the closing attorney in advance of the closing. If wiring from a brokerage account, you should send the wire two days in advance to allow for enough lead time. If wiring from an institutional bank account, you should give yourself one day lead time.
What Else Is Important to Be Aware of Prior to Closing?
You should bring two forms of identification to the closing, including a valid driver's license with a photo. A passport is a good backup form of identification for a belt and suspenders approach. A social security card also is acceptable.
You and your agent will schedule the final walk-through in advance of the closing. The walkthrough generally takes 30-45 minutes. The actual closing takes approximately 1.5 hours.
The closing generally takes place at either the buyer attorney’s office or the buyer agent’s office. You will be given important documents to take with you, and you will also be emailed a copy of the signed closing package for your records.
The buyer’s agent will typically coordinate the keys at closing.
Your attorney will then electronically record the deed, mortgage, and other recording documents with the Registry of Deeds. Once the transaction is “on record”, your attorney will immediately send email notification to all parties.