Key Takeaways
- Bring a form of government ID – maybe even two as some states require multiple
- Set up a wire transfer or digital payment rather than getting a paper cashier’s check for closing.
- Review your closing Disclosure ahead of time, then bring it to closing to double check.
Closing on a new home may seem like a daunting task, but with the checklist below, you’ll be more than prepared for the closing table.
1. Closing disclosure
The closing disclosure explains your closing costs, including what is due at closing. It also specifies your loan amount, interest rate, monthly payments, and an explanation of what all the monthly payment covers e.g. principal, interest, property taxes, homeowners insurance, private mortgage insurance.
2. Proof of insurance
You are required to show proof of homeowner’s insurance in order for your lender to approve your mortgage. Verify with your title company, but the declarations page of your insurance policy should suffice at closing because it will include your name, address, a description of the home you are insuring, and the policy’s premium.
3. Cashier’s check
Closings traditionally require a cashier’s check in order to cover your closing costs and cash to close, which is the real estate term encompassing your down payment, closing costs, and reimbursement for prepaid expenses. However, Closinglock offers a Good Funds Payments tool, which allows homebuyers to simply and securely send cash-to-close payments directly through Closinglock.
4. Photo ID
Bring a photo ID for everyone listed on the mortgage loan, as closing companies are required to verify their identities. You may bring a signed U.S. driver’s license, U.S. or foreign passport, or a U.S. ID cart.
5. Real estate agent
It’s important to bring your real estate agent or closing attorney to the closing as you will need to read and review multiple legal documents such as the mortgage and closing disclosures.
Preparations before closing day
While there are plenty of things to do on closing day, your preparation ahead of time will make closing day much easier.
1. Review your closing disclosure
Certainly bring it to closing as we noted above, but you should review this immediately upon receiving it at least 3 days prior to closing. That way if you find errors you can address them before you get to the closing table.
2. Set up digital payment
It’s much easier to set up a wire payment to cover your closing costs and cash to close than it is to get a paper cashier’s check. Don’t risk losing a paper check and giving yourself one more thing to do.
3. Upload proof of insurance
You will need your homeowners well in advance of closing. Provide it to your title agency once you have it so you can speed up the process on closing day.
Follow these simple steps and closing day will be an uneventful, stress-free and exciting day!
