Step 8: CloseYour Loan

Closing on your loan is when all of your efforts pay off. You will sign a variety of papers and receive the keys to your home. Before you achieve this goal, there are a few things you'll need to take care of as these tasks must be finished before or at least by the date of closing. To help you prepare for closing review these articles to learn more about the process and costs:

• What Do You Need To Do Before Closing?
• Who Attends Closing?
• What Do You Need To Bring With You?
• What Fees Are Paid At Closing?

During the closing you may feel as though you've signed your name 100 times, but when you sign the document, the home is yours!

What Do You Need to Do Before Closing?

There are a few tasks you'll need to do before closing. Your real estate agent can help you schedule or complete these tasks:

• Recheck the home you are buying. The day before or the day of closing do a walkthrough-a final inspection of the home. Make sure that everything (lights, water, etc.) is in working order. Check to make sure that anything that is to convey, or stay, with the home is still in place. Items that are to convey are listed in the contract and include items that are not permanently fixed in place such as a washer and dryer or window treatments.
  

• Review the settlement statement. You should receive a copy of the settlement statement (also called the HUD-1 form) so that you can review all the settlement costs. The HUD-1 form includes all of the fees to be paid by both the buyer and seller. It lists all of the fees paid before closing as well as the fees due at closing. Review this statement carefully to ensure that it is accurate.
• Get a cashier's check. Often a personal check will not be accepted at closing, so you will need to get a cashier's check for the settlement amount shown on the HUD-1.
• Open utility accounts. Call the utility companies (gas, electric, water, phone) and ask for service to be started at the home so that you'll have utilities up and running when you move in.
• Buy homeowner's (or hazard) insurance. You'll want to contact a few insurance companies to compare rates. The insurance company will need some information about the house, which you can get from the listing form provided by your real estate agent. Ask the insurance company to provide you (or your lender) with proof that you have paid for this insurance. This proof is required at closing.
  

Who Attends Closing?

Closing is attended by the buyer and seller and their agents, the lender, and a representative from the title company. Sometimes an attorney will attend. An attorney is not required in every state or for every transaction. Usually, your agent or the seller's agent will call everyone to schedule the day and time of the meeting.

What Do You Need to Bring with You?

In addition to the cashier's check for the settlement amount and your proof of homeowner's insurance, it's a good idea to bring along copies of the forms and papers you have received from the lender, your agent, or the homeowner's insurance company and your checkbook. A black ink pen and small notebook are also handy to have. Ask your agent or lender for any other items you may need for your closing.

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