Are you in the process of buying a house? You may have heard the term “closing” referenced during your home-buying journey, but what exactly does closing a house mean?
To put it simply, closing on a house is the final step in the home-buying process. It’s when all parties involved come together to sign all the paperwork and take legal ownership of the property. Let’s break down what to expect when you go to close on your new home.
What Happens At Closing?
At closing, you will be signing many documents that legally transfer ownership of the property from the seller to you. These documents include loan paperwork, deed transfers, title transfers and other miscellaneous paperwork pertaining to the sale of your new home. As part of this process, you will also need to pay any remaining costs associated with buying your new home—typically in cash or certified funds—including any closing costs, down payments or other fees associated with your loan agreement.
Your mortgage lender will likely provide you with a document outlining all of these costs prior to closing so that you can make sure everything is taken care of before arriving at closing. This document is known as a Closing Disclosure Statement and should outline all expenses related to your mortgage loan as well as any additional charges that may apply such as taxes or prepaid insurance premiums. It’s important to review this statement closely and make sure all costs are accounted for prior to signing any documents at closing.
Once everything is signed and paid for, ownership of the property transfers from seller to buyer and you officially become the proud owner of your new home! Congratulations!
Closing on a house is often seen as an intimidating experience because there’s so much paperwork involved and plenty of numbers being thrown around. However, if you arm yourself with knowledge regarding each step in the process beforehand, there shouldn't be anything too surprising when it comes time for closing day. Knowing what happens at closing and reviewing important documents ahead of time can help ensure that everything goes smoothly on closing day so that you can get into your new home without a hitch! Good luck!