Closing Day

Congratulations - you’ve made it to closing day! You’ve found the perfect home and your offer was accepted. Now it’s time to sign the paperwork!

Before Closing Day

It typically takes 30-45 days to close on your home from the date your offer is accepted. During this time, your home inspection, appraisal, and underwriting (the process of writing the loan) will take place. Before your closing day, your lender will send you a closing disclosure. This will outline the total amount that is due on closing day and the terms of the loan – make sure to review this carefully to verify that everything is correct.

On Closing Day

Closing day is the last step in your home buying process. It’s the day when you sign your loan paperwork, pay for the home, and get the keys to your new home! On closing day, you can expect to spend about 1 hour or more signing your loan paperwork. On closing day, you’ll transfer the funds for your down payment and pay closing costs, which are fees and expenses charged by lenders and third parties. Most of the time, the homebuyer pays for the closing costs. Sellers may pay a portion of the closing costs depending on the loan type and negotiations with your realtor.

Closing Day

What’s included in your closing costs.

Closing costs may vary by location and property type. Typically, buyers can expect to pay about 3% of the home purchase price in closing costs – this is separate from your down payment.

Closing costs may include:

• A loan origination fee, the fee lenders charge for making the loan • Discount points or fees you pay in exchange for a lower interest rate • Underwriting processing and document fees for the cost of evaluating a home loan application • A credit report fee • Appraisal fee • Tax service fee to monitor if property taxes have been paid on time • Escrow fees • Title search fees to make sure there are no unpaid mortgage tax liens or judgments against the property • Title insurance, which protects you and the lender in case the title isn’t clear • Recording fee, which is paid to a city or county in exchange for recording the new land records • Pest inspection fee • Charges for inspections required or requested by the lender or you • Escrow deposit, which may pay for two months of property taxes and PMI

Once your paperwork has been signed and closing costs have been paid, you will be given the keys to your new home. Congratulations!