Closing On Your New Home

You're finally in the home stretch. Closing-also known as settlement or escrow-is the last step, the official transfer of the property from the seller to you. Once it's completed, you'll be the proud of owner of your new home. In the meantime, here's what you need to know to prepare for your closing. If you have additional questions, your agent will be happy to help you.

What to Bring:

• A certified check (payable to yourself) for the amount specified in your most recent good faith estimate from your loan officer, lender, or agent.
• Your checkbook to cover any extra charges, if necessary.
• Your new homeowner's insurance binder, with proof of one year's payment, unless already supplied to your lender.
• A photo i.d.

What to Expect:

Contrary to stories you may have heard, the typical closing proceeds without complications and only lasts an hour or so. It usually takes place at the office of the title company. Primarily, you'll sign numerous papers and documents, all of which will be explained to you along the way. You'll finalize your mortgage, if applicable, pay what's due and receive the keys to your new home!

Your good faith estimate outlines the various expenses you'll incur at the closing. Basically, you'll need a certified or cashier's check that covers:

• the balance of your down payment (subtract the earnest money you paid when your offer was accepted on the home.)
• Fees for other services including loan and origination fees, tax and insurance escrows, recording fees, transfer taxes and title insurance fees.

At the closing, you will receive a formal settlement statement that details and documents the charges.

TIP: Be sure to obtain your certified check at least two days before closing.