The day before you’re scheduled to sign your loan papers, you will receive what is called a closing disclosure, which itemizes all the various charges, fees and credits related to your transaction. These costs will also have been provided to you early on in the form of a cost estimate which lists potential charges you will see at your settlement. If there are any questions, speak with your loan officer. You can expect a final closing amount slightly different than originally disclosed, but this is normal. Any new charges you weren’t made aware of initially aren’t your responsibility.
You and your agent will visit the property one more time for a final walk-through. During your walk-through, you’ll notice any needed repairs that have been completed. Did the sellers perform the requested actions listed in the sales contract? This is your last opportunity to make sure the sellers agreed to the letter the terms of your contract.
Your settlement agent will provide a stack of closing documents for your review, signature and initials. Read through your documents carefully and if there are any questions, now’s the time to ask. Once you’ve signed all your paperwork, you will provide the necessary funds typically in the form of a cashier’s check or bank wire.
The settlement agent returns the signed documents to the mortgage company who will then review all the paperwork, making sure the settlement agent followed the lender’s instructions to the letter. Once the lender has made this determination, the settlement agent is provided a “funding number” which is essentially a code that unlocks the mortgage funds from the lender’s bank.