What to Bring to Closing on a House?

Closing, the final stage of purchasing a home, marks the official transfer of ownership. This event involves signing legal documents and finalizing financial transactions. Being prepared for closing day helps ensure a smooth transition into homeownership. Understanding what to bring avoids delays and allows you to confidently complete the process.

Required Identification and Documents

Proper identification is a requirement for closing on a house. All individuals on the mortgage or deed must present a valid, unexpired government-issued photo ID, such as a driver’s license or passport. Your ID name should precisely match loan documents to prevent discrepancies. If a name change occurred, supporting documentation like a marriage certificate may be necessary.

Bring a copy of your purchase agreement or sales contract, along with any addendums. This document references agreed-upon terms, including the purchase price and special conditions. Lenders require proof of active homeowners insurance on closing day. Bring your insurance binder or the policy’s declarations page, showing your coverage start date and property details.

If securing a mortgage, bring a loan commitment letter from your lender and any other requested lender-specific documents. Original or certified copies are often required for legal verification.

Financial Preparations

You will need funds for your down payment and closing costs, which include title fees, escrow fees, and prepaid expenses like property taxes or initial homeowner’s insurance premiums. The total amount, “cash to close,” will be provided by your lender or title company a few days before closing.

Personal checks are not accepted for these amounts due to “Good Funds” laws. These laws require funds for real estate transactions to be immediately available and secure for disbursement, preventing delays from checks needing to clear.

Acceptable payment methods include wire transfers or certified/cashier’s checks. Wire transfers are common for larger sums, as funds are credited immediately. If wiring, verify routing and account numbers directly with the closing agent or title company via a confirmed phone number to prevent wire fraud. Fraudsters may intercept emails and send fake wiring instructions, leading to financial loss.

Obtain a certified or cashier’s check from your bank, made payable to the correct party, such as the title company or escrow agent. Confirm the exact payee name with your closing agent. You will also receive a final Closing Disclosure (CD) from your lender at least three business days before closing. Review this five-page document thoroughly for accuracy, as it details all loan terms, fees, and costs.

Practical Items for the Day

Certain practical items can contribute to a smoother closing experience. Bring your own pen, as you will be signing numerous documents. Have a list of questions for your attorney or closing agent to ensure all concerns are addressed. A fully charged phone is useful for communication or accessing digital documents.

Water or snacks can be beneficial, as closing appointments can sometimes take an hour or more. Bring contact information for utility companies to facilitate service transfer. Organize all documents in a folder or bag to keep paperwork secure and easily accessible.

The Closing Appointment

Various parties typically attend the closing appointment, including the buyer, seller, closing agent or escrow officer, real estate agents, and sometimes attorneys for either party. The closing agent guides everyone through the documents that require signatures.

You will review and sign numerous legal documents, such as the promissory note (your promise to repay the loan) and the mortgage or deed of trust (securing the lender’s interest). Other documents may include affidavits and disclosures confirming various aspects of the transaction and property. It is important to read each document carefully and ask questions if anything is unclear.

The closing agent’s role involves explaining each document and ensuring all necessary signatures are obtained. Following the signing of all paperwork, the final transfer of funds occurs. This includes the down payment and closing costs you provided, along with the loan funds from your lender.

Once all documents are signed and funds are disbursed, the deed and mortgage are recorded with the local county recorder’s office. This legal step officially transfers ownership of the property to you and places the mortgage on public record.

The culmination of the process often involves the exchange of keys, marking the official transfer of possession. You will also receive copies of all the signed documents for your records immediately after the closing is complete.