Closing Expectations

Closing is the final step when purchasing or refinancing a home, where all aspects of the transaction are officially completed.   

Buying or refinancing a home is a significant milestone for any borrower. However, for those unfamiliar with the process, navigating the mortgage journey can feel overwhelming. Team Lasson is committed to empowering our borrowers with the knowledge they need to navigate the home loan process. Here’s what you can expect during closing:

Payment

At closing, you’ll need to bring a certified or cashier’s check to cover your down payment, if applicable, and closing costs. Some closing agents may require wire transfers instead of a physical check. It’s important to confirm these details ahead of time with your lender or closing agent to ensure a smooth process.

Who's attending?

Depending on where you’re closing, you may see a variety of people involved in the transaction, including:

• The closing agent
• Your lender or their representative
• The seller (if you’re purchasing a home)
• Your real estate agent
• A title company representative, who ensures the property title is transferred correctly

What Happens at Closing

• Review and sign all necessary loan documents, which will include the deed of trust or mortgage, promissory note, and Closing Disclosure.

• Submit a certified or cashier’s check (unless a wire was already sent) for the down payment (if required), along with closing costs, prepaid interest, taxes, and insurance. The lender will provide you with the total amount due prior to closing.

• The lender will transfer the funds for your home loan to the closing agent.

• Once all legal documents are signed and required payments are made, you’ll receive the keys to your new home.

Preparing for Closing Costs

There are costs associated with closing. Knowing about these can help the closing process run more smoothly. The total amount of closing costs is usually between 3-5% percent of the loan amount.

Appraisal and Inspection Fees – These fees, often paid before closing, are necessary to confirm the home’s market value and assess its condition

Title Insurance – Title insurance is a crucial one-time cost that safeguards you against any legal disputes or claims on the property. Though it’s an upfront expense, it offers long-term peace of mind about your ownership rights.

Loan Origination Fees - Most lenders charge an origination fee. This fee covers the administrative work involved in processing your loan and is paid at closing.

Closing or Settlement Fees - The closing agent or settlement company charges a fee for managing the distribution of funds and overseeing the required documents during the closing process.

Government and Recording Fees - These fees cover the cost of filing the necessary legal documents with the appropriate government offices to record the sale or refinance of the property.

Third-Party Loan Costs - Additional third-party fees may include charges for flood certification, credit reports, and verification services. These costs vary based on the property and loan type.

Property Taxes and Homeowners Insurance - At closing, you’ll prepay your first year of homeowners insurance premiums. Additionally, if your loan requires an escrow account, you may need to make an initial deposit to cover future property taxes and insurance.

Private Mortgage Insurance (PMI) - If your down payment is less than 20%, PMI may be required. Depending on your lender, this could be a one-time payment at closing or included in your monthly mortgage costs.

Closing is an exciting and essential step in the homebuying or refinancing process. Team Lasson with Flat Branch Home Loans is here to ensure you feel confident and informed every step of the way. By understanding what to expect, you’ll be well-prepared to finalize your home loan and step into your new chapter with ease.

Team Lasson is here to assist with all of your home buying needs!  If you’re considering taking the leap into home ownership in the near future, we’re here to help.  Contact us today to explore which loan program aligns best with your financial goals. 

The first step in preparing for your big purchase is to get pre-approved for a mortgage at Lake of the Ozarks.  Visit www.yourlakeloan.com or call us at (573) 216-7258 to get started today!

 

Michael Lasson

Senior Mortgage Banker

NMLS #:  493712

Flat Branch Home Loans – Team Lasson

2882 Bagnell Dam Blvd

Lake Ozark, MO 65049

Cell:  (573) 216-7258

Email:  teamlasson@fbhl.com

Website:  www.yourlakeloan.com

**The postings on this site are my own and do not necessarily represent Flat Branch Home Loans positions, strategies, or opinions.

Flat Branch Home Loans NMLS 224149. A Division of Flat Branch Mortgage Inc.

For more licensing information, visit NMLSConsumerAccess.org