As of now, you know when your loan closing will be. This is the big day when you’ll sign the papers and own your new home. It’s important to know what to expect on the day of the loan closing. This guide will tell you everything you need to know.
Buying a house is an exciting yet stressful process. As the end date approaches, it’s normal to feel a range of emotions, from excitement to worry and everything in between. The days before closing can be especially nerve-wracking. This is the home stretch, when you need to make sure everything is ready for the big day.
Knowing what to expect in the days leading up to closing can help you feel more prepared and avoid any last minute surprises Here’s a comprehensive guide to the closing countdown so you can breeze through the homebuying finish line with confidence
One Week Before Closing
The week before closing is crunch time. Here’s what you should be doing:
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Contact your lender and real estate agent. Confirm closing date, time, and location. Find out what paperwork you still need to turn in and go over the final numbers.
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Begin preparing needed documents. For the closing costs, you’ll need a government-issued ID, certified funds, and proof of home insurance. If necessary, you may also need extra paperwork like a divorce decree.
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Confirm moving logistics. Book movers if using them. If moving yourself, get supplies and recruit helpers.
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Change utilities to your name. Get in touch with your gas, electric, water, internet, cable, and other service providers to switch over your home services.
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Opt for wire transfer. Setup wire transfer for closing funds through your bank. Get receipt showing transfer.
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Avoid large purchases. Don’t make any big purchases that could impact your debt-to-income ratio. Lenders will check your credit again right before closing.
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Confirm homeowners insurance. Your lender will ask for proof of valid homeowners insurance at closing. Verify coverage is bound and provide declaration page to lender.
Staying on top of these closing preparations will avoid headaches down the road!
3 Days Before Closing
Three days before your scheduled closing date, you should receive and review your Closing Disclosure from the lender. This important document outlines all the final details of your mortgage loan including:
- Interest rate and monthly payments
- Closing costs itemization
- Loan amount and term length
- Escrow account projections
Carefully review your Closing Disclosure and contact your lender immediately if you have any questions. Once signed, there is a mandated 3-day waiting period before you can sign final loan documents at closing.
1 Day Before Closing
Congratulations, you’re almost there! Here’s how to spend the last day before closing:
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Conduct final walkthrough. Walk through home one last time to ensure condition is as expected and seller has moved out.
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Review closing checklist. Confirm you have all needed documents, identification, and certified funds.
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Verify closing time & location. Don’t be late to your closing appointment! Check traffic and drive time.
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Make copies. Photocopy executed closing documents to retain for your records.
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Pick up gift. Consider a small gift or thank you card for sellers if appropriate.
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Get a good night’s sleep! Closing day can be long so make sure to get plenty of rest.
Following up on these closing day eve tasks will give you peace of mind heading into the big day!
What to Expect on Closing Day
The closing appointment is when you’ll sign the final paperwork to officially purchase the home. Here’s a rundown of how it will likely go:
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Arrive 15 minutes early with all needed documents and certified funds.
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Thoroughly review and sign the closing documents. Ask questions!
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Pay closing costs and down payment via certified check or wire transfer.
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Receive copy of deed and keys once seller signs off. Congrats, you are now a homeowner!
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Expect to be at closing appointment for 1-3 hours.
In attendance at closing will be you (the buyer), seller, real estate agents, attorney, and settlement agent. The seller may elect to pre-sign documents so they do not need to attend. Your real estate agent will guide you through the closing process.
After Closing To-Dos
You did it! What next? Here are some important tasks once you close and get the keys:
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Change locks. Hire a locksmith to re-key the property for security.
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Deep clean house. Even if it looked clean, scrub down surfaces before move-in day.
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Complete final walkthrough. Look for anything amiss one last time before moving in.
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Redirect mail. Submit change of address and mail forwarding request with USPS.
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Unpack slowly. Don’t feel rushed. Take your time settling into your new home.
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Meet neighbors. Introduce yourself to neighbors. Get to know the community.
Enjoy celebrating your new home and begin making memories in the days after closing!
Be Prepared, Not Stressed
In the final days before closing, being prepared is the name of the game. Use this guide to know what to expect before closing so you can check all the boxes, avoid surprises, and sail smoothly into homeownership. Stay in close contact with your agent and lender, gather needed paperwork in advance, show up to closing ready to sign, and then get ready to start enjoying your new home sweet home! With the right preparations, you’ve got this.
3 days out: Review the closing disclosure document
The closing disclosure shows your loan terms, final closing costs and any outstanding fees you owe. You’ll receive this document at least 3 days before closing, so you have time to thoroughly review your loan information before your closing – once you sign it, there’s an official 3-day waiting period before you can sign the rest of your loan documents. If you have questions about any of your mortgage loan information on the closing disclosure, this is the time to ask your loan officer or lender.
The closing disclosure shows the actual cost breakdown of your mortgage loan, including:
- Closing costs
- Estimated taxes, insurance, and other fees
- Interest rate
- Loan amount
- Monthly payment amount
1 week out: Gather and prepare all the documentation, paperwork, and funds you’ll need for your loan closing
You’ll need to bring the money for the down payment, closing costs, and escrow items. Usually, this comes in the form of a cashier’s check or a wire transfer. You’ll also need to present government-issued identification, such as a driver’s license or a passport, and proof you’ve purchased a homeowners insurance policy. Your loan officer or lender will be able tell you everything you should bring to your loan closing appointment, including the exact amount of the funds you owe.
What Happens On Closing Day?
FAQ
What happens days before closing on a house?
Review the closing disclosure Your lender is required by law to send you the Closing Disclosure at least three business days before your closing day. This document outlines key details about your loan, including: Loan term, amount, and interest rate. Estimated monthly mortgage payment.
What to do 3 days before closing?
By law, you must receive a copy of your Closing Disclosure three business days prior to closing. At least one week before the closing, talk to your lender or closing agent (title company, escrow officer, or attorney) to find out how you will get your Closing Disclosure.
How many days before closing do they run your credit?
A lender will typically run your credit a second time, just before closing, to ensure your financial situation hasn’t changed since the initial application. This usually occurs within a few days of the closing date.
Can a deal fall through on closing day?
Yes, a real estate deal can fall through on closing day. While most closings proceed as planned, unexpected issues can arise, causing the deal to fall apart, even at the last minute.