Closing the Loan

The closing is the final phase of your home buying and mortgage process, so now your new home is just a few steps away. If you haven't already, make sure you do the following:

• Review your loan commitment with your lender to make sure you understand all the requirements
• Set the closing time and date based on your sales contract and the loan commitment expiration
• Confirm that a survey of your property has been ordered. Check with your closing agent or attorney
• Make preparations to move (notify your landlord, complete change of address forms, arrange for utilities to be disconnected at your current address and made available at your new home, and plan your actual move)
• Conduct a final walk-through inspection of your home-to-be
• Make sure you've satisfied all the requirements of your agreement with the seller
• Get a certified or cashiers check from the bank for your closing costs. Cash or personal checks are generally not accepted

On closing day, ownership of the property will be transferred from the seller to you, and you will sign documents that acknowledge your rights to the property you have purchased, your agreement to repay the money you have borrowed, and the lender's right to the property if you default on the loan. A closing agent (an attorney of your choice or a title agency representative, depending on local custom) will coordinate and distribute all the paperwork and funds, according to the terms agreed upon by you and the seller.

As soon as you've taken care of the paperwork, you're a homeowner! Grab the house keys and get ready to start life in your new home.