Buying a home is a major milestone for Mississippi residents, but the process can be overwhelming, especially if you’re a first-time homebuyer. One of the most important steps in buying a home is closing.
What is closing?
Closing, or settlement or completion, is the ultimate step in buying a home. It is the meeting where you sign the paperwork to transfer ownership of the property from the seller to you, the buyer. Closing typically takes place at a title company or an attorney’s office. It involves several parties, including the buyer, the seller, and their respective attorneys or residential real estate agents.
What to expect at closing
The closing day can be exciting and nerve-wracking, but knowing what to expect can help ease your nerves. Here’s what you can expect to happen at closing:
Review the closing disclosure
Before the actual closing, you will receive a Closing Disclosure, a document outlining the final terms of your mortgage loan. Review this document carefully to ensure all the terms are correct and there are no surprises.
Sign the mortgage documents
You will need to sign several documents at closing, including the mortgage note, which is a promise to repay the loan, and the mortgage deed, which transfers ownership of the property to you.
Pay closing costs
Closing costs are fees associated with the home purchase and are typically paid at closing. These costs include loan origination fees, title insurance, appraisal fees, prepaid property taxes and homeowners insurance.
Receive the keys
Once all the paperwork has been signed, and the closing costs have been paid, you will receive the keys to your new home.
Tips for closing on a house purchase
Make sure to prepare in advance by having all the necessary documents and funds ready before closing day. If you have any questions or concerns about the closing process, don’t hesitate to ask your real estate agent or lender about details that matter to your finances and well-being.
Read and review all documents carefully before signing. Make sure that all the terms are correct and that you understand everything. Furthermore, bring a valid form of identification, such as a driver’s license or passport, to the closing.
Doing your due diligence
Closing on a house purchase is a crucial step in the home-buying process and, therefore, the rest of your life. Prepare in advance, review all documents carefully and don’t be afraid to ask questions to ensure a smooth and successful closing.