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The Top 6 Questions Homebuyers Have About Closing

Read Time: 3 Minutes Date Published: October 30, 2020

You’ve finally found the perfect home! The only thing left to do is close the deal. Going to the closing table, especially for the first time, can be a little intimidating. In fact, almost every first-time homebuyer, and many seasoned homeowners, have questions about the closing process.

We’ve compiled answers to some of the most common questions about closing to help you sit down at the closing table with confidence.

Woman smiling with two people at table in background

What is closing on a home?

The closing is a scheduled meeting and your final opportunity to review the transaction and make any changes. When the deal is finalized, you’ll leave the closing table as the legal owner of the property, with the keys to your new home in hand.

What do I need to do before closing?

Before you reach the closing table, there are few things you must do, as well as number of items that are not required, but are still a good idea. First, your home must be appraised, which will be ordered by Newrez. Unless you pay cash for the home, we will also run a title search, which is typically done by a title company, and ensures that you can actually own the house outright free and clear of any liens. It’s also prudent for you to hire a home inspector to conduct a home inspection—to safeguard against any material defects. Finally, you must secure the necessary homeowners insurance, which can vary depending on where you live.

Many home-sale contracts allow you to do a final walkthrough of your new property within 24 hours of closing, so take advantage of this. A final home walkthrough affords the opportunity to make sure your home is still in good condition, and that the previous owner has completely vacated the premises.

What do I need to bring to closing?

First and foremost, come to your closing prepared with a state-issued photo ID (in some cases, two forms of ID may be required).

Bring the paperwork you’ve accumulated over the entire homebuying process, including proof of relevant insurance. Your real estate agent or loan specialist will be able to provide more detailed instructions specific to your situation.

Finally, you will need to bring a certified or cashier’s check for amount of your closing costs. Your lender will advise you of the exact amount. The down payment is typically paid prior to closing—usually within a specified time period after the seller has accepted your offer.

What happens at closing?

Depending on the location, you’ll meet with an agent from the title company or an attorney and, in all likelihood, the seller. Your real estate agent and/or your attorney are welcome to attend the closing with you. As experienced professionals, they will be able to help you navigate the entire closing process.

You will then sign a number of documents that legally transfer the home to your name and obligate you on the purchase loan. Most importantly, when all the paperwork is signed, you will walk out of the office with the keys to your new home in your possession.

How long will closing take?

This will depend on a number of factors, but plan to spend at least 1-2 hours at closing. It’s an important process, and the closing documents are reviewed in detail. It’s certainly not the time to schedule a “quick meeting” during your lunch hour. You’ll want to give yourself plenty of time to make sure things run smoothly.

How much are closing costs?

Your closing costs refer to the out-of-pocket money needed to complete the mortgage transaction. Naturally, closing costs will vary depending on several factors, including the purchase price of your home, and sometimes its location, too.

However, some types of mortgages will allow these expenses to be included in the mortgage amount. And in some cases you may even be able to negotiate some of these costs to be paid by the seller.

Are you ready to buy a home? Get in touch with our team of mortgage specialists for all the mortgage options available to you. You can also visit our articles section for more homebuying and mortgage tips.


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Why Newrez?

Newrez believes the lending business shouldn't just be about home loans - it should be about homeowners. That's why our employees get to know our customer's real needs, through final closing, and beyond.

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Disclosures

By refinancing an existing loan, the total finance charges may be higher over the life of the loan.

††The rate on your existing mortgage will not change. The Newrez Home Equity Loan program requires borrower to obtain a second mortgage at current market rates. Loan amount based on underwriting guidelines. Minimum 660 credit score. Minimum and maximum loan amounts apply. Program financing only available on properties with one existing mortgage lien and subject to maximum loan-to-value ratio. Not available in all states or territories. Other terms and restrictions apply. Please contact us for more information.

^ This HELOC is an open-end line of credit, available on owner occupied properties, where 75% of the approved full credit limit (minus the origination fees) will be drawn at the time of closing. Additional draws may be available after a 90-day period within the first 3 years not to exceed the available credit limit. Actual rates available to you may vary based on several factors including your credit score and combined loan-to-value. Loan amounts range from $50,000 to $350,000. We may determine home value and resulting equity through independent data sources and automated valuation models. An appraisal may also be required. Only available for eligible borrowers and property types. Not all applicants will be approved, pre-approval is based on data you have provided and certain assumptions that must be verified and subject to underwriting approval. Not available in all states or territories. Contact Newrez for more information.

This is not a commitment to lend. All loan programs are subject to credit, underwriting, and property approval. Programs, rates, terms and conditions are subject to change without notice. Other restrictions apply.