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 and Flat Branch Home Loans are 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.
Quick Closing Checklist
The closing process can be daunting. Here is a quick and
easy checklist to make sure you are prepared for closing:
- Bring
a valid photo ID.
- Verify
your final closing costs and wire transfer instructions.
- Review
all documents before the appointment.
- Complete your final walkthrough.
Closing Out
Closing is an exciting and essential step in the homebuying or refinancing process. Team Lasson 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.
If you have any questions about the closing process or need
additional guidance, don’t hesitate to reach out to our team. We’re here to
help you every step of the way!
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!
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
