Even for those who have bought a home before, the time between offer acceptance and home closing can be full of stress and uncertainty. How can you be sure everything will go smoothly? Who can you turn to for help?
When you choose to work with the mortgage loan officers at SESLOC Credit Union, you will always have a dedicated advocate in your corner throughout the process. For those who are not sure what to expect, our team put together this guide on how to get to closing, what happens at closing, and the next steps afterwards.
The Path to Closing on a House
Closing is the final step in the home buying process: The money from your mortgage is transferred from your financial institution to the home seller, and the deed to the home is placed in your name. But before you can get there, you’ll need to complete several steps.
After your bid on a home is accepted, a purchase agreement is signed by both parties and the purchase process begins. Although you may have a pre-approval letter in hand, you don’t start the loan application until you have a house “under contract.”
Completing a loan application is the first step towards closing. Your mortgage loan officer will help you with the application and introduce you to the underwriting process. During underwriting, you will need to provide several pieces of information for consideration, which can include:
- Information about the home you are purchasing
- Your employment information, including your position and title
- Two years of W-2 statements
- Bank account and investment account statements
- Your credit report
If you have any questions about what paperwork you will need, ask your mortgage loan officer. They will be happy to help you get a head start.
As your loan application is processing, you will also be responsible for several activities. You will need to lock in your interest rate, get quotes for and purchase homeowner and title insurance, and get a home inspection. The mortgage provider will also schedule their own home appraisal to double check the home value is commensurate with the purchase price.
Once everything is complete, your mortgage loan officer will let you know you are ready for closing.
What to Expect at Closing
Before you come to the closing table, you will receive a closing disclosure. This will not only give you the date, time, and location of your closing appointment, but provide you with the final loan terms and closing costs you will need to pay. You will also be given a list of items to bring to the closing appointment, such as your photo identification.
Your closing appointment will involve several people to help transfer the home into your name. This may include the title company or escrow company that is facilitating the transfer and your real estate agent. While your mortgage loan officer will still be available to help, they may not attend your closing.
At closing, you will be required to acknowledge and sign the paperwork to take possession of your home. The paperwork includes:
- The final closing disclosure
- The promissory note to your lender
- The mortgage (it may also be called a security instrument or deed of trust)
- The property deed or title deed to your home
Before signing anything, be sure you read the documents and understand what you agree to. The title company and you real estate agent will be on hand to answer your questions.
What Happens After You Close on Your Home?
Once the paperwork is all signed and the closing costs are paid, you will officially become a homeowner and get the keys. Your mortgage lender will instruct you when to start making monthly home payments, while the title company will file the appropriate ownership paperwork with the county recorder.
Your mortgage loan officer will still be there to answer any final questions. Afterwards, all other questions, concerns, and payments will be directed to your mortgage servicer. If you want to thank your mortgage loan officer for their help, a good review on Google or Yelp goes a long way.
When you’re ready to start taking the journey towards your new home, getting to closing may be the last thing on your mind – but your SESLOC mortgage loan officer is always thinking about how to keep you moving forward. Contact our mortgage loan team today to learn how they can help you. No matter if you’re just starting out or already have the perfect home picked out, our team is here to ensure the process goes as easy as possible.
