Recently, we discussed the fifth step in the home buying process: Processing and Underwriting. Once the clear-to-close (CTC) is issued, your loan moves into the sixth step: Closing. This is the final step in the process before you move into your new home.
What Happens at Closing
At closing, all the necessary paperwork is presented and signed by both the sellers and the buyers. At least three business days prior to closing, you will receive a Closing Disclosure (CD). The CD will detail all of your closing costs and factor in any down payments, credits or gift funds provided on the loan transaction.
When you close on your loan, the title of the property is transferred to the buyer, an escrow account is set up if applicable, funds are obtained by the buyer, and the security interest of the lender is recorded by the County or City Clerk. Should you need funds for closing, these must be in the form of a certified check.
After Your Loan Closes
You will make payments on your mortgage loan following an amortization schedule. An amortization schedule will show you the amount of principal versus interest you are paying each time you make a payment.
Once your loan has closed, your lender may transfer servicing of your loan to another lender or servicing company. You will be contacted both by your current lender and your new lender/servicer in the event that servicing is transferred. If you have any questions after your loan closes, you can reach out to your Loan Originator, or to your current loan servicer.
If you missed any of our 6 Step blogs, you can find them here:
- Step 1: Get Pre-qualified
- Step 2: Choose Your Loan Type
- Step 3: Find Your New Home
- Step 4: Apply for the Loan
- Step 5: Processing and Underwriting
Homeownership is a rewarding achievement. The home buying process may present challenges, but having qualified mortgage professionals by your side can make all the difference. If you have any questions about the home buying process, contact one of our licensed Mortgage Loan Originators. If you are ready to buy a home, click here to get started!