So the finish line is in sight. Or is it? When it comes to closing on your home loan, it's tough not to let your emotions get the best of you as worries sprout up like weeds. Let's pull out some of those concerns by addressing a few common pre-closing questions:
So when can I schedule my closing?
As soon as possible, right? If only it were as easy as making a phone call. In reality, once the underwriter satisfies and documents all the conditions of your loan and puts a stamp of approval on it, we are cleared-to-close. Your loan moves to the lender’s closing department and K&H begins the work of coordinating with the lender, the title company and you. What can cause a delay? Sometimes the lender might be backed up a few days with other closings or you could be buying a home from a bank who wants 3-4 days to review your closing package. Know that we will do all we can to meet deadlines and accommodate your schedule, so expect a call from us to schedule a place, date, and time.
What is a closing package?
At the beginning of your home financing journey, we prepared a stack of documents and asked you to sign them to start the loan process. Funny enough, it ends the same way. The lender prepares everything you are going to sign, things like your mortgage, note and a lot of disclosures, and sends them to the title company doing your closing. The title company works on your closing statement (also called a HUD-1) that shows the specifics of your transaction as well as the bottom line; how much money (if any) you need to bring to closing.
Where do I go and how much do I bring?
Both great questions. Most of the time, the closing is going to take place at the title company that did the work on your title policy. Other times, the title company can come to you or we can meet at the K&H office. If you don’t know where to go, just call K&H and we’ll help you figure it out. Be sure to bring your driver’s license, and in many cases, your spouse (if you have one), even if they aren’t on the loan.
As far as how much to bring, once the lender approves the closing statement, either the title company or K&H will get you a copy of it. At the very bottom of the first page, there will be a figure of how much money you need or are getting back. It is important to note that you’ll either need a cashier’s check or a wire transfer from your bank made out to the title company. Personal checks and cash don’t work. If you are getting funds from an out of state bank or an investment account, plan ahead; this can be a process that takes days not minutes.