What to expect on closing day - You will meet with the closing agent and go over all the details of the trasnaction. You will sign all documents pertaining to the sale of the home and the mortgage documents.
You will show proof of paid homeowners insurance, pay closing costs with certified check (if applicable).
If you are in a table funding state, your loan will fund the same day and you will receive the keys to your new home on the day of closing. other states you will usually wait a day or 2 for the lender to do a post closing check of all documents. Even in states that are not table funding states, there are lenders who will fund same day as closing on a purchase loan.
On a refinance loan, you will wait 3 days for the recission period to end before getting proceeds of the trasnaction.
It is important that you bring a photo ID with you to closing. If something does not seem right to you or the rate and or terms of the mortgage have been changed without your knowledge you have the right to cancel and walk away.
You can expect to sign many documents. Some of these documents you have probably already signed for your mortgage broker when you filled out the application for the loan. In addition you will sign a Note, the Mortgage, the HUD-1, etc. Many of these documents are several pages long and are full of legal language that is difficult to follow. Who ever is handling your closing should be able to briefly describe each section and/or each form in general. The forms are all very standard and required for all loans. Make sure you ask any questions you may have, and make sure you are aware of your loan amount, interest rate, pre-payment penalty terms, if it is an adjustable rate double check how and when the rate adjusts, etc.
There are different types of 100% loans. You can
either get 1 loan for 100% or an "80/20" loan. Speak to your mortgage
professional to see which program is best for you!
