Closing on a Loan

Now is the time to tie up loose ends and complete any remaining paperwork. Ask your lender about digital options, such as electronic documentation and signatures, to save time and effort. Use this checklist to ensure everything is in order and you’re prepared for the closing.

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Down payment
Fee for loan application/origination

Closing costs:

Title search and insurance
Taxes
Lender costs
Expenses such as homeowners insurance, mortgage insurance, and an initial escrow account

Before closing

Work with your settlement agent to ensure you’ve provided everything needed for closing
Pay the fee for loan application/origination.
Review your Loan Estimate or closing disclosure to make sure you have the appropriate funds for your closing costs and down payment. (Remember, you’ll need to bring a certified check or cashier’s check for this amount to your loan closing. Wires are also acceptable)
Work with your lender to finalize your loan terms, such as interest rates, fees, and your repayment period.
Shop for homeowner’s insurance and provide necessary information to your lender. (TIP: Your loan officer or real estate agent may have contacts to help you shop)
Refrain from opening any new credit cards, taking out loans, or other large purchases.
Schedule final walk-through to take place before closing.
Work with your lender to confirm the name on your government photo-issued ID matches the name that will appear on the property’s title and mortgage.

Documents to bring to the closing

Paperwork

Any outstanding paperwork or documents that your lender requested.

Identification

government-issued photo ID (TIP: Prior to closing, work with your lender to make sure your name on your ID matches the name that will appear on the property’s title and mortgage.)

Funds

Cashier’s check/funds for closing costs

Closing disclosure: covers the final loan terms and closing costs. (Closing disclosures are provided at least three days prior to closing. Make sure you compare this document with your Loan Estimate.)
Loan application: contains key details about your finances and should be reviewed again for accuracy.
Mortgage note (or promissory note): represents your commitment to pay the money back.
Deed of trust: provides security for the loan — it uses the house you’re buying as collateral, which means if you default on mortgage payments, the lender can foreclose on the house.

Deed: shows the transfer of property ownership from the seller to you.
Affidavits: legally binding documents that you sign to indicate that all the information you’re providing is accurate.
Initial escrow disclosure: a document required by federal law (if you are creating an escrow account) that accounts for financial obligations that extend beyond the loan itself.
Transfer tax declaration (if applicable): applies to property transfer taxes that may be required in some cities, counties, or states.
Certificate of occupancy (if newly constructed home): indicates that the house is in compliance with building codes, and it is suitable for occupancy. Usually it’s issued by the county/city prior to closing occurring and is handled by the builder or general contractor.