7. What do I Get at Closing?

by Local Title

Closing day is the momentous occasion when you finally take possession of your new home. Understanding what you will receive on this day ensures that you are fully prepared and can walk away with all the necessary documentation and keys to your new property.

The Deed

The deed is the most critical document you will receive at closing. It officially transfers ownership of the property from the seller to you. The deed will be signed by the seller and, once recorded with the local government, it becomes a public record confirming your ownership of the home.

Closing Disclosure

You will receive a Closing Disclosure, which details all the final costs associated with your mortgage loan. This document provides a thorough breakdown of your loan terms, monthly payments, and closing costs. It’s crucial to review this document carefully before closing to ensure it matches the Loan Estimate provided earlier in the process.

Loan Documents

Several important loan documents will be part of your closing package, including:

  • Promissory Note: This document outlines the terms of your mortgage loan, including the amount you owe, the interest rate, the payment schedule, and the length of the loan.
  • Mortgage or Deed of Trust: This document secures the loan with the property as collateral. It gives the lender the right to foreclose on the property if you fail to make your mortgage payments.

Title Insurance Policy

You will receive a copy of the title insurance policy, which protects you and your lender against any claims or disputes over the ownership of the property. This insurance ensures that you have clear and marketable title to the property.

Homeowner’s Insurance Policy

You will need to provide proof of homeowner’s insurance at closing. You will receive a copy of your homeowner’s insurance policy, which protects your new home and personal property against various risks such as fire, theft, and natural disasters.

Property Keys

One of the most exciting moments at closing is receiving the keys to your new home. These keys mark the official transfer of possession, allowing you to move in and start making the home your own.

Additional Documents

Depending on the specifics of your transaction and the requirements of your state, you may receive additional documents, such as:

  • Home Inspection Report: If you had a home inspection done, you might receive a copy of the report, which details the condition of the property.
  • Property Survey: A property survey shows the boundaries and any structures or improvements on the land. This document is particularly important if you have concerns about property lines or encroachments.
  • Tax and Utility Information: You may receive information about property taxes and utility services, including how to set up accounts in your name.

Closing day is a significant milestone in the home-buying process, culminating in the transfer of ownership and possession of your new home. By understanding what you will receive at closing, you can ensure that you have all the necessary documents and information to start your new life as a homeowner. With the deed, loan documents, insurance policies, and keys in hand, you’ll be well-equipped to move forward with confidence and excitement.