THE CLOSING - HOW LONG DOES IT TAKE & WHAT TO EXPECT

You have found the home of your dreams and both you and the seller have agreed on a sale price.  You and your family can hardly wait until you can get settled in your home.  But before the moving van is parked in front of your new home there is The Closing.

If you are a first time buyer you have two questions: "How long does it take?" and "What should I expect?"

On the average closing a home takes 30-45 days to complete the title search, complete the loan process and complete any home inspection and associated repairs.  Depending upon your particular situation though this time can be shorter or longer.


What happens at the closing?  If your closing is taking place at a table with both parties present it is best to allow about an hour for signing necessary documents.  There are also mobile, mail and online closing which can be either faster or slower.

At the closing you will need to carefully review and sign all the legal documents required for the lender to issue the mortgage and transfer the ownership of the property to you.  The closing papers for the buyer can include:

 * The promissory note committing you to repaying the loan. (not applicable in all cash transactions)
 * The mortgage which gives the Lender the right to foreclose on the property should you default on the loan. (not applicable in all cash transactions)
 * The escrow disclosure detailing the charges that will be incorporated into your monthly loan payment. Commonly called PITI (Premium, Interest, Tax, Insurance)(If a cash transaction, you will need to pay for property insurance and prorated taxes)

What to bring to the closing?  Be sure to talk with your real estate agent or attorney regarding what you will need to bring to the closing.  At the very least you will want to bring the following:

 * Your personal form of identification, i.e. driver's license.
 * The Closing Disclosure you received three days prior to the closing.
 * A cashier's check or wire transfer for the funds you owe at closing.

What you will pay at closing?

 * The Lender's origination fee and any third party fees not yet paid.
 * A prorated portion of property tax
 * Interest that will accrue prior to your first mortgage payment
 * An amount towards the homeowner's insurance coverage
 * Title insurance premium
 * Any Home Owner's Association fees if applicable

Once The Closing is finalized and the keys are in your hand it is time to make this house your Home!