Once your lender has notified you that you’re clear to close, a good majority of the mortgage process will be behind you. However, a few important stages still stand between you and homeownership. After you’ve cleared underwriting and conditional approvals, your loan officer will send you a Closing Disclosure. This five-page document outlines the terms and conditions of your mortgage agreement, providing a comprehensive overview of all of the costs and fees you’ll pay when you provide your signature.Closing Disclosure
Because you’re on the hook for any and all expenses mentioned, understanding your Closing Disclosure is one of the most important steps of the home buying process. Make sure you’re not signing a document that contains errors or clauses that will work against your repayment plan.
Final Walk-through
Even if you buy the house as is, a final walk-through after you receive the Closing Disclosure is your chance to ensure the property is in the condition you and the seller have agreed upon. Walk-throughs aren’t technically a required step after you’re clear to close, but skipping out on a final inspection could be a costly mistake.
In most cases, the home should be ready to go by the time you conduct the last walk-through. But if anything is wrong with the house, this is your last chance to catch these problems before they become your responsibility.
Closing Day
With everything else in order, you’ll finally reach the long-anticipated closing day. Your closing meeting is when the home title officially transfers and you become the new legal owner of the property.
Your closing day is all about tying up any loose ends and sealing the deal. This includes signing all paperwork, updating the deed and paying your down payment and closing costs.
