The process of buying a home can be lengthy and sometimes frustrating. The closing is the final step you have to take before you officially become a homeowner.
The prospect of a real estate closing can be both exciting and scary. Issues can arise at the last minute to cause the deal to fall through just as it is almost complete. While some of these problems may be beyond your control, knowing what to expect at closing may help you avoid any last-minute complications.
1. Your lender may do a final credit check
When you take out a mortgage, you borrow a very large amount of money to pay back over many years. This represents a substantial risk to the lender. Therefore, just to make sure everything is in order, the lender may perform a final credit check on the day of closing.
According to U.S. News and World Report, you should avoid any other big purchases before finalizing the transaction. These can damage your credit to the point that the lender decides to withdraw approval for your loan at the last minute.
2. You need to verify your identity
There is very little that you need to bring with you to your closing, but you do need to make sure you have a government-issued photo identification document, such as a driver’s license, to prove your identity. If you do not have it, it may not stop the closing from taking place, but it can slow it down if you have to run home to get your ID.
3. You have to sign a lot of paperwork
The representatives of the title company and the lender will bring most of the paperwork you have to sign, as well as your co-borrower if you have one. Sitting next to one another rather than across the table helps make it easier to pass papers between the two of you. This may make the closing go a little faster.