How to Close on a Mortgage
Closing on a mortgage is the final step for home ownership. For those that have never closed on a home mortgage before, the process can feel overwhelming. Closing on a mortgage involves working with the mortgage company and clarifying terms with the seller or seller's representative. Mortgage closing also requires assembling a significant amount of personal documentation to support the information provided on the loan application.
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Things You'll Need
- Mortgage application
- Personal tax returns
- Pay stubs
- Bank statements
- Cashier's check for closing
- Personal checkbook
Instructions
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Complete the mortgage company application and submit all required paperwork once an offer has been accepted on the home. The mortgage company will send your paperwork to underwriting for review and verification, and begin preparing the legal documents required for closing, such as a title search and appraisal. Be prepared to answer questions about any marks on your credit score and to provide additional paperwork as requested. At minimum, most mortgage companies will require tax returns from the two previous years, pay stubs for the past two months, and the past two months' bank statements.
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Review the settlement statement when the mortgage company completes the underwriting process. The settlement statement is a comprehensive financial review of every cost associated with purchasing the home for both the buyer and the seller. Make sure any agreed-upon purchaser benefits, such as seller-paid closing costs or a home warranty, are properly accounted for on the settlement statement.
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Set a closing date with the title company and obtain a cashier's check for the amount of money required for the loan closing. The amount of money required for closing will be reflected on the settlement statement.
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Close on the loan at the title company on the date set. Be prepared to spend at least an hour so that you have time to review all the documents in the loan package. Also, bring your checkbook in case some of the final closing numbers differed slightly from the original settlement statement. You may need to write a personal check for incidental costs.
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