Congratulations! You’ve found your dream home, navigated the offer process and secured financing. Now, the final hurdle stands between you and officially owning your new abode: closing day. While excitement might be bubbling over it’s natural to feel a tinge of anxiety too. After all, closing involves signing a mountain of paperwork and handing over a significant chunk of cash.
Worry not future homeowner! By preparing in advance and knowing exactly what to bring to closing you can transform this potentially stressful experience into a smooth and celebratory occasion. So, let’s dive into the essential items you’ll need to have on hand for a successful closing:
1. The Power of Identification: Your Photo ID
Imagine reaching the closing table ready to sign on the dotted line only to realize you’ve forgotten your ID. Don’t let this nightmare scenario unfold! The title company, responsible for overseeing the closing process, needs to verify your identity. A valid, government-issued photo ID is your ticket to closing success. Acceptable options include:
- Driver’s license: Ensure it’s current and not expired.
- U.S. ID card: A handy alternative if you don’t drive.
- Passport: Whether domestic or foreign, your passport serves as a valid ID.
Remember, everyone listed on the mortgage loan needs to present their own photo ID. The title company takes identity verification seriously, so don’t leave anyone out!
2. The Financial Lifeline: Your Cashier’s Check
Closing day involves more than just signing documents—it’s also about finalizing the financial matters. This covers your down payment, closing costs, interest that has already been paid, real estate taxes, and evidence of homeowner’s insurance. Collectively, these expenses are known as your “cash to close. “.
You can’t just pull out your debit card and call it a day, though. Closing requires a cashier’s check or a wire transfer to cover these costs. The precise amount you require in advance will be provided by your lender or title company, giving you plenty of time to obtain the required funds.
3. The Closing Disclosure: Your Roadmap to Transparency
Among the documents you’ll receive before closing, the Closing Disclosure stands out as your financial roadmap. This vital form outlines the final terms and costs associated with your mortgage loan, ensuring transparency and clarity. Your lender is obligated to provide you with this document at least 3 business days before closing.
Scrutinize the Closing Disclosure carefully. It provides information about your loan amount, interest rate, and monthly payment, as well as a breakdown of the amounts allocated to each payment component. The document also includes a list of your closing costs, which gives you a clear idea of what you’ll have to pay on closing day.
Having the Closing Disclosure on hand is crucial. If any discrepancies arise between the document and the closing paperwork, don’t hesitate to raise concerns with your lender and title company. Remember, you have the right to understand and agree with every detail before signing.
4. Proof of Insurance: Your Shield Against the Unexpected
As a homeowner, safeguarding your investment is paramount. That’s where homeowners insurance comes in. This policy protects you financially in case your home suffers damage or destruction. The insurance company steps in, providing funds to cover repairs or even rebuild your home.
Before closing, you’ll need to obtain a homeowners insurance policy. Your lender will likely require proof of this insurance, typically in the form of your policy’s declarations page. This page contains essential information, including your name and address, a description of your insured home, and your premium amount. Double-check with your lender and title company to ensure you’re bringing the correct form of proof to the closing table.
5. Professional Representation: Your Trusted Allies
Navigating the closing process solo isn’t advisable. You’ll be signing numerous documents, making significant financial commitments, and embarking on a major life change. Having professional representation by your side provides invaluable support and peace of mind.
Your real estate agent or real estate attorney serves as your trusted ally during closing. They can answer your questions, review the closing documents with a keen eye, and address any concerns you might have. In many states, having legal representation at closing is mandatory, often involving a flat fee for their services.
Even if your agent or attorney can’t physically attend the closing, they’ll typically send a representative to ensure your interests are protected. Additionally, for situations where the buyer or seller resides in a different state, a remote closing might be an option, allowing you to participate virtually.
Bonus Tip: Embrace Preparation, Conquer Closing Day
Feeling a bit overwhelmed by the closing process? Take a deep breath and remember that preparation is your key to success. By gathering the necessary documents, securing your cashier’s check or wire transfer, and communicating effectively with your agent and attorney, you’ll set yourself up for a smooth and stress-free closing experience. Embrace preparation, and you’ll be well on your way to celebrating the joyous occasion of owning your dream home!
Now that you’re equipped with the knowledge of what to bring to closing, it’s time to take the next step towards homeownership! Get pre-approved for a mortgage and let’s turn your dream into reality.
A last-minute check on whether you’ve got everything you need for closing day, when purchasing a home or property.Updated by
Its closing day on the home youve purchased. Your moving van is packed and ready to go. But this real estate deal isnt done yet. If something goes wrong, and the closing cannot be completed that day, everything could be put on hold. You wouldnt even receive the house keys yet. Even though you, the buyer of the property, have no complete control over the situation, you can lessen the aggravation of a postponed closing by making sure that the necessary paperwork and other items are available; this is especially true if the closing is being held in person. (More and more are being done virtually. ).
To help prepare, you might want to create a closing checklist. What exactly goes on that list will depend on:
- the kind of property you’re purchasing—a freestanding house, a condo, or a cooperative, for instance
- the terms of your purchase contract
- if you’re taking out a mortgage, the conditions of your loan, and
- state and local real estate closing rules and customs.
This article lists many of the common last-minute closing requirements. Before attempting to obtain these items, you should inquire as to whether your real estate sales agent, attorney, or the escrow company (sometimes referred to as the “escrowee”) handling the closing will provide any or all of the suggested items in certain parts of the United States.
For more general information about your home purchase closing, see Home Buyers: What Happens at the Closing.
Closing Items for Purchases Where Buyer Is Taking Out a Loan
Apart from the aforementioned, if you are financing your home purchase with a loan, you will also have additional expenses to pay for. Thankfully, you will receive a loan commitment from the bank or other lender that outlines the conditions of the loan and typically includes a list of items required for the closing. Read this carefully, looking for what you are required to do at, or bring to, the closing.
However, the loan commitment often omits some standard or customary documents, or lists them only in the boilerplate. Thus, in the event that you are applying for a loan, you may also need to bring the following items to the lender:
- Insurance Homeowners insurance certificate and paid receipts. All lenders will want you to provide a homeowners insurance certificate, stating the lender as an additional loss payee and covering the greater of the amount required to cover the cost of the loan or the replacement cost of the house. Additionally, proof of payment for the first premium must be provided. Ask your lender to provide you with the exact language so you can provide it to your insurer. Lenders have specific requirements regarding how they are named in insurance policies. Make sure the insurance commences on the closing date. When buying a condominium or co-op unit, you will need to insure your own unit and the homeowners association or management company will provide you with a certificate of insurance covering the jointly owned portions of the property. Wind insurance. If your house is near a tornado or hurricane, your lender may need a wind rider on your homeowners insurance. Flood insurance. For homes located in a national flood hazard area, the lender will demand flood insurance. Even if the lender does not require it, you might want to consider purchasing flood insurance, as detailed in Hurricanes and Flood Insurance: What Homeowners Should Know. Earthquake insurance. Where earthquakes are a possibility and the state does not require the coverage to be included in a standard homeowners insurance policy or to come from a state pooled fund, the lender may demand earthquake insurance. If you are required to purchase private earthquake insurance, carefully read the policy and ensure that the deductible you have selected aligns with your budget.
- Pest inspection. Some loans require a wood-destroying pest inspection. Federal Housing Administration (“FHA”) and Veterans Administration (“VA”) loans can have less stringent requirements, so find out from your lender which inspections are necessary for the specific home.
- Septic letter and/or well letter. The local health department may require a septic letter if the house you are buying isn’t connected to municipal water or sewers. If using a VA or FHA loan to purchase, the letter may need to include certain language that can be obtained from the lender.
- Judgment or lien release. Should you be subject to a judgment from a previous lawsuit or debt, you may need to bring a notarized, written, and signed release with you to the closing. Your attorney or escrow company can help you obtain this.
- Construction lien waivers. You might need to bring a contractor’s sworn statement and lien waiver to the closing if you have a contract for improvements on the property. In certain states, as soon as the work contract is signed, contractors automatically acquire a lien on the property.
- Documentary stamps. Certain states mandate that the buyer obtain stamps for the mortgage that resemble the documentary or transfer stamps mentioned above.
Consult your agent, lawyer, title or escrow company, or any of these parties if you are not sure if you have all these items or need them.
What Do I Need To Bring To My Real Estate Closing?
FAQ
What happens on the day of closing?
What is closing checklist?
How does the buyer know how much money to bring to closing?
What do you need to bring to a closing?
Buyers must bring a passel of documents and a cashier’s check to closing. They’ll sign numerous documents. Unless you live in a state requiring an attorney to be present at closing, closing documents for sellers are minimal; there’s less to sign. In this post, we’ll show you what to bring and what you’ll need to sign to close the deal.
What do you need to close a Costco store?
In addition to patience, you absolutely must have the following: Photo ID: The closing agent has to verify that you are who you say you are. A driver’s license or current passport will do. A Costco membership card, not so much. Cashier’s or certified check: This is to cover any down payment and closing costs you owe.
What do you need to know about closing documents?
Closing signifies the end: a time to cash the check and move on. Buyers must bring a passel of documents and a cashier’s check to closing. They’ll sign numerous documents. Unless you live in a state requiring an attorney to be present at closing, closing documents for sellers are minimal; there’s less to sign.
What should I bring to my escrow closing?
A passport will also do. Funds. Your attorney or the escrow company will calculate the amount of money you need to bring to the closing. You might want to include a small overage, as a cushion to cover unanticipated closing costs. All but minimum amounts should normally be wired to the escrow company.