Step 4: Countdown to Closing
Your mortgage broker or lender will be working diligently to secure your loan and finalize the loan documents. At this point, they may need additional paperwork from you, and it’s very important that you provide it as soon as possible. Keep in mind that you shouldn’t make any major purchases during this time without consulting your lender. Major purchases, such as a car or boat, could affect your credit score and your debt-to-income ratio, and could cause you to no longer qualify for a home loan.
Once all of the loan documents have been approved, your mortgage broker or lender will send them to the escrow officer at the title company. The escrow officer will prepare a Settlement Statement, also known as the HUD-1. The lender will approve this document and both agents will review it to ensure that the terms in the contract are correctly reflected. The HUD-1 Settlement Statement is a standard form which is used to itemize services and fees charged to the borrower by the lender or broker. The HUD will indicate how much money you need to bring to closing.
In the final week before closing, you’ll need to schedule the initiation of utilities and other services. Prior to closing, a final walk-through is conducted by the buyer to inspect the home. The purpose is to make certain that the property is in the same condition as when you agreed to buy it, and that agreed upon repairs, if any, have been made.
CLOSING (AND REALIZING THE DREAM OF HOME OWNERSHIP)
On the day of your closing, your WPM agent accompanies you to the title company to meet with an escrow officer in order to sign the documents required by your lender. After you and the seller have signed all of the documentation, the escrow officer will notify the banks involved so that the funds can be exchanged between banks. Once this happens, you officially own your new home. The title company will call us and your WPM agent will call to let you know that your house keys are ready to be picked up.
Just because you have closed on your home does not mean that your relationship with us will end. We at WPM continue to provide support and advice, as needed, long after the sale of your home. We are always available to you if you ever have any questions or if you ever need assistance, and strive to remain an invaluable resource for you.