Closing Day: What Homebuyers Need To Know

Closing day is a nerve-wracking experience for most homebuyers. It can be overwhelming and stressful if you don’t know what to expect or how the process works.

Knowing what documents need signing, money that needs exchanging, and other things to look out for can help ensure closing day goes smoothly. A realtor in Hollywood, CA, can easily guide you through this process.

The following are some things homebuyers need to know about closing day.

What is Closing Day?

Closing day is the final step in the home buying process when the buyer and seller come together to complete all necessary paperwork and exchanges. Generally, this happens after a buyer’s offer has been accepted, inspections have been completed, and financing has been secured.

Closing day is usually held at an attorney’s office or title company, or it may be conducted virtually. Having a realtor in Hollywood, CA, by your side can take the stress out of closing day.

Documents Need To Be Signed On Closing Day

On closing day, you and the seller must sign several documents. These documents will effectively transfer ownership of the property in question.

These documents include the following:

Purchase Agreement: This contract outlines the agreement between you and the seller, including the purchase price, closing date, and other details.

  • Mortgage Note: This document states that you borrow money from a lender to purchase the home.
  • Mortgage Deed: This document records your mortgage payment agreement with the lender and proves their claim on the property.
  • Title Report: This report confirms that the seller owns the title to the property and is transferring it to you.
  • Closing Disclosure Statement: This statement summarizes all costs associated with the closing, including taxes and fees.
  • Property Deed: This document confirms that you are the home’s legal owner.

Your realtor in Hollywood, CA, can help ensure all required documents are signed correctly and provide any additional information or advice to make your closing day successful.

Know When Your Mortgage Payments Begin

A clear understanding of when your mortgage payments begin is essential for closing day. Most lenders require the first payment to be made within 30 days after closing, so planning ahead is important. To ensure you know when and how much you need to pay, it’s best to consult with your realtor in Hollywood, CA, before closing day.   

Be Aware Of Closing Day Costs

On closing day, it’s important to be aware of any additional costs associated with the transaction. These costs include loan origination fees, recording fees, title search fees, mortgage insurance premiums, taxes, and more. 

Depending on your location, these costs can vary significantly. It’s important to understand all additional costs before closing day.

Make Closing Day Easy With a Realtor in Hollywood, CA!

You can avoid problems on closing day with an experienced realtor in Hollywood, CA, by your side. We are here to help you get through this process.