Closing Checklist
November 27, 2024 | Posted by: Sherry Corbitt
Are you in the middle of a mortgage? If so, you must be anxiously counting the days until your closing date. Yet, much is involved before you reach your closing date to ensure your mortgage closes successfully. Creating a checklist is a fantastic way to track everything that needs to be completed before you close. Consider some key steps you should include on your closing checklist.
Getting Final Mortgage Approval
This is the first step towards becoming closed on your mortgage. To get into the closing stage of your mortgage process, you need to get your final approval on your mortgage. When you first get approved, the lender approves the amount they will lend to you. This final approval means that they are satisfied with all your income documents and are assured that you will be able to pay off your loan. To get to this step, you must satisfy their lender conditions. If you’re working with a broker, they will alleviate this task for you and submit all the required items. Yet you must ensure that you provide the necessary documents your broker asks for. The sooner the lender receives the items, the sooner you can be approved.
Doing a Walk Through
Although you are now approved for your mortgage, you want to verify the paperwork quickly. This should include looking over your commitment and the mortgage details. You do not want to sign at the lawyers and then realize that there is an aspect of the mortgage that you did not realize. Make sure you are happy with your mortgage amount, payment schedule, rate, and term. If you want something changed, you will need to let your broker know so they can notify the lender. Although you will need to be re-approved and closed at a later time, it will be much better to be happy with your mortgage than to close and regret it.
Have Your Closing Paperwork Ready
Before you go to the lawyer to sign your closing paperwork, you want to ensure that you have all your paperwork prepared. You should locate and put aside a handful of items for your signing. The items you will always need to provide include two forms of ID’s and a bank cheque. Depending on your mortgage, you may be required to provide more documentation. Confirm with your broker and lawyer before you go in to sign.
Funds Prepared For Closing Costs
This is one of the most fundamental aspects to consider before you sign. To close successfully, you will need to examine what your closing costs are and what debts you need to pay out. You should examine this before you get ready to go to the lawyer. Yet you should ensure that you have the proper funds to pay off these costs and debts. If not, then you will not be able to close. When your funds are prepared early on during your mortgage, you will not need to stress what money you will use to pay.
Arrange a Time to Sign With Your Lawyer
The last primary closing step will be to sign with your lawyer. Your lawyer will typically contact you 3 to 7 days before your closing date to sign, yet you can reach out to them to sign earlier if possible. They will be responsible for ensuring that your mortgage is legalized. While you are there, they will also be responsible for registering for your title insurance and collecting your down payment. At this stage, you agree to all the mortgage terms of your lender and the mortgage itself. Once you are finished signing, and the closing date comes around, you will be able to move into your new house!
When you incorporate these actions into your mortgage, you will undoubtedly be able to close your mortgage successfully. Please reach out to me if you have any questions, I am always here to help with your mortgage needs!
Your Broker for Life,
Sherry Corbitt
Sources:
Ojo Home (2022). Closing Checklist For Homebuyers. Retrieved from https://blog.ojohome.ca/closing-checklist-for-homebuyers/
Shobhit, Seth (2021). 12 Steps of a Real Estate Closing. Investopedia. Retrieved from https://www.investopedia.com/articles/mortgages-real-estate/10/closing-home-process.asp
