Closing on a new home may seem like a daunting task, but with the checklist below, you’ll be more than prepared for the closing table.
Closing on a home can be an exciting yet stressful time As the big day approaches, it’s normal to feel some anxiety about making sure you have everything in order One of the best ways to ease worries is to be fully prepared by knowing exactly what to bring to closing.
I want to provide a comprehensive guide on what to bring to a real estate closing so you can check each item off your list and avoid any last-minute surprises. We’ll cover the key documents funds, and representation you need for a smooth closing experience.
Documents You’ll Need at Closing
Certain paperwork is essential to have with you at the closing table. Being organized with these documents will help the closing process go quicker and more smoothly.
Closing Disclosure
The most critical document to bring is your Closing Disclosure. This form provides the final terms of your mortgage loan. Your lender must give you the Closing Disclosure at least 3 business days before the closing date.
Review the Closing Disclosure carefully and make sure you understand all the fees and costs. If anything looks incorrect or different from what you expected, be sure to contact your lender right away. You should never sign closing papers if the numbers don’t match up with your Closing Disclosure.
Purchase Agreement
While the title company will have a copy, you should bring your purchase agreement or purchase contract to closing. This agreement details the negotiated price and terms between you and the seller for the home.
Having your copy on-hand allows you to double-check that the information aligns with the closing documents.
Identification
To verify your identity, the title company will check your photo ID. Bring a valid, signed ID such as:
- Driver’s license
- Passport
- U.S. ID card
All parties listed on the mortgage loan need to provide proper ID, so make sure everyone is covered.
Insurance Documentation
Your lender will require you to have a homeowners insurance policy in place before closing. At closing, you need to provide proof of this new insurance coverage for your home.
The declarations page is a common form that shows information like the address of the property, the amount of the premium, and the policy limits. Talk to your insurance agent and title company to make sure you have the right document.
Financial Items to Bring to Closing
Closing day is when you’ll sign the mortgage note and pay the remaining money needed to complete the transaction. This includes downpayment, closing costs, and prepaid property taxes and insurance.
To cover these final expenses, you can’t just write a personal check. The title company requires guaranteed funds like:
Cashier’s Check
A cashier’s check comes from your bank, so the funds are verified. Make sure to request the cashier’s check a few days before closing so you have time to pick it up from the bank.
Wire Transfer
You can complete a wire transfer to electronically send the funds from your bank account to the title company. Like with a cashier’s check, initiate the wire a few days early.
Cash
You can pay your closing costs with cash, but it’s not a good idea. The title company won’t have extra money, so make sure you only bring the exact amount you owe. Also, take security precautions when transporting large amounts of cash.
Representation You Should Have at Closing
Closing on a home is typically the biggest, most complex transaction you’ll ever make. You shouldn’t go through it alone without experienced guidance looking out for your interests.
Real Estate Agent
Your real estate agent plays an invaluable role at settlement. They will explain each document, answer your questions, and flag any discrepancies. If your agent can’t attend in person, they will send another agent from their office.
Real Estate Attorney
In many states, the law says you have to have a real estate lawyer at the closing. An attorney will look over the paperwork from a legal point of view and help you with the deal for a flat fee.
Remote Online Notary
If circumstances prevent you from attending closing in person, ask if remote online closing is possible. This allows the buyer and seller to electronically sign documents with a notary present online.
What Not to Forget!
On the big day, you’ll have a lot on your mind. To avoid showing up unprepared, here’s a closing day checklist of must-have items:
- Closing Disclosure
- Purchase agreement
- Valid photo ID
- Insurance documentation
- Cashier’s check or wire transfer funds
- Your real estate agent or attorney
Following this list helps guarantee you’ll have everything needed for a smooth closing. One less thing to worry about as you get the keys and embark on an exciting new chapter in your home!
Preparations before closing day
While there are plenty of things to do on closing day, your preparation ahead of time will make closing day much easier.
Certainly bring it to closing as we noted above, but you should review this immediately upon receiving it at least 3 days prior to closing. That way if you find errors you can address them before you get to the closing table.
It’s much easier to set up a wire payment to cover your closing costs and cash to close than it is to get a paper cashier’s check. Don’t risk losing a paper check and giving yourself one more thing to do.
The safest way to send funds
Send earnest money and cash-to-close payments without the risk of wire fraud.
You will need your homeowners well in advance of closing. Provide it to your title agency once you have it so you can speed up the process on closing day.
Follow these simple steps and closing day will be an uneventful, stress-free and exciting day!
What Happens On Closing Day?
FAQ
What do I need to bring to a closing?
Closing disclosure. The closing disclosure explains your closing costs, including what is due at closing. Proof of insurance. Cashier’s check. Photo ID. Real estate agent. Review your closing disclosure. Set up digital payment. Upload proof of insurance.
What is the 3 day rule for closing?
The most noticeable thing about traditional mortgages is the three-business-day wait between getting your closing disclosure and the consummation date, which is also called your “closing day.” This rule of three business days was put in place in October 2015, and it applies to both new mortgages and refinancing.
What happens on the day of closing?
On the day of closing, the buyer and seller sign the necessary paperwork to transfer the property ownership, finalize the mortgage, and exchange funds. The buyer typically pays closing costs and receives the keys to their new home.
Do you bring a gift to closing?
It’s essential to give closing gifts after the deal has officially closed.Oct 21, 2023