Checklist for Closing Day: What Do I Bring to Settlement?

Settlement is a big deal for your deed. It involves the signing and filing of all documents needed for the purchase of your new home—the deed, loan documents, and settlement statement. Settlement is the first step in closing, which is the full legal process of transferring homeownership. The final step is filing the new deed with the county Recorder of Deeds. Usually, it all happens on a single day. And usually (except when there’s a different plan in the parties’ agreement), the buyer gets the keys on the same day, too.

Now, what do you need to bring? Let’s look at what you need to gather in the days leading up to settlement and then bring to the settlement itself.

Checklist for the Time Before Closing Day

When someone sells their home, a closing attorney may handle their paperwork. The buyer covers the legal costs as part of the settlement.

But as the buyer, you and your agent will determine the closing time and location. Here are some key points to consider before the big day:

• An appraiser will examine the home and write up a report with plenty of pictures. This will give the parties the real market value of the home. And you’ll pay for a home inspection. Plan to be present when the inspector comes. You’ll find out what needs to be fixed and what doesn’t, and get the professional’s tips on the right way to do it. Your agent may gain some negotiating leverage. You’ll be charged for these professional services. This is normal.

• Typically, settlement occurs in a closing attorney’s office. That said, the title agent could even meet you at your real estate agent’s office. State law tells you whether an attorney must be present at closing.

• You’ll want to be sure you’ve got your closing disclosure at least three business days in advance of your settlement. Call the title company or mortgage consultant if you don’t see it. It is a critical document. Printed on a legal template, it will detail your mortgage terms. It will show your interest rate, the amount of your monthly payment, your closing costs, and the amount of money you’re expected to bring to your settlement. That period of three business days is meant to give you a full opportunity to look over your loan and be sure you’re on board with every detail.

• You’ll want to ask your mortgage consultant or title agent for your final cash-to-close figure and precisely how to pay it. This figure represents the down payment, closing costs, prepaid interest, taxes, insurance, and escrow funding to start off the future monthly payments. You’ll pay through one of these methods:

• A cashier’s check. Getting a cashier’s check, if your bank or credit union has a physical presence nearby, will take just minutes. Come in with the exact dollar amount and your ID.

• A certified check. That’s your check, certified by your bank or credit union. The financial institution verifies and holds the funds in your account.

• Or, quite commonly, your mortgage consultant may have told you to wire cash to close to the title company (at least two business days in advance, to allow your transferred funds time to clear).

Look out for wire fraud scams that target the settlement process. Double-check the wiring instructions with your mortgage consultant or title agent before you send the funds.

As you approach settlement, expect to show the mortgage consultant that you hold homeowner’s insurance for your new home. And speaking of insurance, now is the time to ask for an owner’s title policy for your new home. This is optional, so you need to affirmatively order a policy. A one-time premium at closing insures your title.

Also in these heady days leading up to your settlement date, you’ll go for a final walk-through of the home. Closing means you’ve legally accepted your new home as it is. So, you and your agent should take that final walk-through. You’re making sure the home is as it was when you made your purchase offer. Check that everything is there that’s supposed to be, that the seller has cleared out everything that’s not, and that all systems and machines are working as they should.

Checklist for Closing Day

When your new mortgage gets the “clear to close” green light, it’s time to gather documentation for the big day:

• An unexpired government ID (such as a passport, driver’s license, other state-issued card, or military ID) and a backup form of identification—for example, your Social Security card. Ask your lender or title company what they expect you to bring to verify your identity before you sign the pile of closing documents that awaits you.

• Your funds, if not wired in advance. You can speak with your mortgage consultant to go over any additional fees you’ll pay.

• Your checkbook. Expect to write a personal check to top off your payment if the figures have been adjusted. This is normal.

• A copy of the closing disclosure form. With this document ready on the day, you can efficiently check all final figures against the numbers your mortgage consultant wrote up for you in advance.

Line up and review all of the above before heading to the office for settlement. When you sit down at the table, you’ll be in front of your stack of loan documents. Bring a free-flowing pen! Expect your signing process to take time (two hours is normal), as the settlement agent explains the papers one by one.

Then, the funds from your mortgage loan will be sent to the closing agent. The bank will deduct its customary fees.  

A homeowner who is refinancing and getting a new mortgage also has a closing day.

The Closing Costs: A Breakdown

You’ll need to cover:

• The title work. That is, the title search and production of documents.

• Loan origination. This covers the processing of your mortgage. You’ll also cover the odds and ends such as credit report pulls.  

• Settlement charges. There are fees for handling the transfers of money and the mortgage and for orchestrating all that takes place at the table on closing day.

• Administrative fees, including the county recording fee for your new deed.

Your initial property taxes and insurance payments are also counted among the closing costs. So are a number of other charges for various reports, security checks, and certifications. This is not a comprehensive list, but we trust it covers the basics for you. When all is said and done, your closing costs can add up to between 3% and 5% of your mortgage amount.

If you are preparing for your settlement day, we wish you the very best! And to all of our readers: We appreciate your visiting Deeds.com.