The Final Step: 8 Things Homebuyers Need to Know on Closing Day

Jul 29, 2023

The Final Step: 8 Things Homebuyers Need to Know on Closing Day

Congratulations! You've made it to closing day, the final step in your homebuying journey. This is an exciting time, but it can also be overwhelming if you're not prepared. To help you navigate through this important day, here are 8 things every homebuyer should know:

1. Review the Closing Disclosure

Before the closing day, carefully review the Closing Disclosure provided by your lender. This document outlines the final terms of your loan, including the interest rate, monthly payments, and any additional fees. Make sure everything is accurate and ask your lender for clarification if needed.

homebuyer closing disclosure

2. Bring the Necessary Documents

On closing day, make sure to bring all the required documents. These may include your identification, proof of homeowner's insurance, and any other paperwork requested by your lender or closing agent. Double-check the list provided to you beforehand to ensure you have everything you need.

3. Understand the Closing Costs

Closing costs can vary, but they typically range from 2% to 5% of the home's purchase price. These costs cover expenses such as appraisal fees, title insurance, and attorney fees. Familiarize yourself with the breakdown of these costs and be prepared to pay them on closing day.

homebuyer closing costs

4. Conduct a Final Walk-Through

Prior to closing, schedule a final walk-through of the property to ensure it is in the same condition as when you made the offer. Check for any damages or issues that need to be addressed before signing the final paperwork. This is also an opportunity to verify that any agreed-upon repairs or improvements have been completed.

5. Bring a Cashier's Check or Wire Transfer

Most closings require payment in the form of a cashier's check or wire transfer. Contact your closing agent to confirm the amount and the preferred method of payment. It's essential to have the funds readily available on closing day to avoid any delays.

homebuyer payment

6. Review the Loan Documents

During the closing, you'll be presented with a stack of loan documents to sign. Take the time to carefully review each document and ask questions if something is unclear. It's crucial to understand the terms of your loan and the responsibilities associated with it.

7. Get Your Keys

Once all the paperwork is signed, it's time to collect the keys to your new home! The closing agent will provide you with the keys and any other relevant information, such as garage door codes or security system instructions. Take a moment to celebrate this significant milestone in your homeownership journey.

homebuyer receiving keys

8. Keep a Copy of All Documents

After closing day, make sure to keep copies of all the documents you signed. These include the Closing Disclosure, loan documents, and any other paperwork related to the purchase of your home. Having these documents readily available can be helpful for future reference or if any issues arise.

Remember, closing day is the final step in the homebuying process, but it's just the beginning of your homeownership journey. Enjoy this moment and embrace the excitement of owning your new home!