Make sure the closing is scheduled before your loan commitment, and any rate
lock-in, will expire. But be sure there is enough time to finish any loan documentation and
properly complete any home inspections or repairs.
Be prepared at closing to do basically two things:
Sign Legal Documents
These documents fall into two categories: The agreement between you and the lender regarding
the terms and conditions of the mortgage and the agreement between you and the seller to
transfer ownership of the property.
Pay Closing Costs and Escrow Items
There are numerous fees associated with obtaining a mortgage and transferring property
ownership. You will be expected to pay these fees at closing. Some of these fees can be paid
by either you or the seller. Remember: Who pays what closing costs can be part of the
negotiations for the sales contract. You also will need to show your homeowner's insurance
policy, and any other requirements such as flood insurance, plus proof of payment.
Tip
Call your local HUD office for a free booklet called "Settlement Costs - a HUD guide," if
you have not already received it from your lender.
Your sales contract also should have specified a final walk-through inspection of the house
24 hours before closing. This is to check that the seller has vacated the property and left
it in good order. If there are any major problems, you can ask for a delay in the closing,
or for money to be set aside by the seller in escrow accounts for the necessary repairs.