Now that you have that coveted final loan approval, there are only a few final things to do before you can pick up the keys to your new home. Although that dream of homeownership is practically in hand, these last items are just as critically important as any other steps in your homebuying journey so be sure to take your time and ask questions! In this blog, we’ll walk through what happens between final loan approval and closing on your new home.
Review Your Closing Disclosure (CD)
At least three business days before closing, your lender will send your Closing Disclosure. This document includes a lot of important information you need to review like the final rate and terms on your loan, monthly payments, lender fees, and any cash you’re getting credited from the seller. You should also see a credit for things you’ve already paid like the appraisal, application fees, and your earnest money deposit (EMD). Be sure to review as soon as possible so you can get any questions answered and errors corrected before closing!
Prepare Your Funds for Closing Day
One important number you’ll find in your closing disclosure is “cash to close.” This is the amount you’ll need on closing day to secure your home. Most people deliver these funds through wire transfers, but you’ll want to be extra vigilant to make sure you don’t accidentally become the victim of fraud. Always confirm any wire transfer requests on the phone or in person with the requesting party. You might have the option to bring a cashier’s check when you sign the final documents as well.
Attend the Final Walkthrough
You and your real estate agent will attend the final walkthrough together. This is your last chance to ensure everything is in order with your new home. You’ll want to verify that all the sellers’ belongings have been removed and any requested repairs were successfully completed. You’ll also want to check that there are no new issues that have cropped up with the property. If the home was supposed to be cleaned after the sellers moved out, you’ll want to ensure that was completed as well.
Sign the Paperwork
At long last, signing day is here! Be sure to bring two forms of valid identification, including one with a photo. Think voter registration, passports, or Social Security cards. You’ll also want to bring that cashier’s check if you elect to do that instead of a wire transfer. Take the time to carefully read through all the documents—the home is as good as yours once you’re done signing! After both the sellers and buyers have signed, the escrow company will give a copy of the paperwork to your lender. The funds will also be transferred to the seller. Once everything is funded and confirmed, it’s time for the final step in the process!
Pick Up Your Keys and Pop the Champagne!
Congratulations—you did it! You officially own a home! Don’t forget to savor the moment, take some pictures with your new keys, and enjoy a glass of champagne or a slice of cake. Welcome to homeownership!
Ready to take the next step to achieve your American Dream? Click here to start the home-buying process with the Potempa Team!
