Clear to close. The most anticipated words in the mortgage industry. Loan officers and borrowers breathe a deep sigh of relief when hearing those words from underwriting. It means the deal is done, the paperwork is done, no more time spent trying to find obscure documentation.
Now, you’re about to write that big check and commit to a home for possibly a 30-year commitment. The deal hasn’t been officially consummated yet. Grab your pen and get ready to sign on the dotted line.
You have seen many mortgage disclosure documents since the process began. The huge volume of paperwork can easily make a first-time buyer feel overwhelmed.
You will receive your final mortgage numbers at least 3 days before closing. In the package, you’ll find closing costs, escrow amounts, interest rates and cash to close. It’s not uncommon for the numbers, especially property taxes and homeowner’s insurance, to be different from the original Good Faith Estimate.
Underestimating escrow amounts can balloon your cash to close and your estimated mortgage payment. So, this is definitely something to track throughout the application approval process.
The documents you sign at the closing table should be the same as your final set of mortgage disclosures. You should expect to sign at least 50 pages of documents with your legal name.
Once the closing documents are signed by you and the seller, they will be faxed/scanned to your mortgage lender’s closing department. In some cases, these documents are required prior to funding your loan and paying the seller. In other cases, the funds have already been wired and are waiting with the closing documents.
Once everything is signed and the loan is funded you are officially a homeowner, congratulations!