Closing on a House
You’ve hit the finish line! It may seem like it’s been a long road, with several stops and starts, but now all of your efforts and patience are about to pay off. After final loan approval, the last step is to close on your new home loan. Do you know what to expect at closing?
The Mortgage Closing Process
Schedule your closing
First, Santander will work with your attorney or settlement agent to prepare the Closing Disclosure (CD). The Closing Disclosure is a form used to itemize all charges imposed upon the borrower and seller. It gives each party a complete list of charges and credits associated with the transaction. Fees associated with the transaction, but paid prior to closing, are also included on the CD.
Your attorney or settlement agent will coordinate the details of the closing date, time and location with you, and review all of the related details. The closing will usually take place at your attorney’s office or the Title Company office. While there, you will be expected to pay your down payment and any closing costs, as well as sign the necessary closing documents.
Closing costs will vary from mortgage to mortgage, but they may include:
- Origination fees
- Appraisal fees
- Private Mortgage Insurance
- Flood Insurance
- Credit report fee
- Home inspection fee
- HOA fees
- Homeowners’ insurance
- Attorney fees
- Closing/Escrow fees
- Application fee
- Courier/postal fees
- Mortgage points
- Property taxes
- Survey fee
- Underwriting fee
- Document preparation fee
- Title services
- Title insurance
- Wire transfer fee
Closings costs will likely be between 2 and 6 percent of the purchase price of your home. Your closing costs will be detailed in the Closing Disclosure, so you’ll know how much you need. Depending on the transactions, a seller may offer to cover some of the closing costs.
You will sign and receive many documents at your mortgage closing. Like with closing costs, this will vary depending on your unique situation. These documents will likely include:
- Promissory Note
- Mortgage/Security Instrument/Deed of Trust
- Paperwork for any automated payment programs
- Your initial mortgage application
- Affidavits, including:
- Owner-occupancy of the property
- Current employment and income
- Name variations or aliases
- The non-existence of secondary financing
- Truth and accuracy of all information supplied to the lender
- Other matters specific to the particular transaction
- Disclosures and Acknowledgments, such as:
- Acknowledgement that a default in payment of the loan could result in foreclosure
- Acknowledgement that the closing attorney/settlement agent represents the lender
- Disclosure of project escrow account activity for the first year
- Acknowledgement that the property is or is not located within a flood zone
- IRS Form W-9
- IRS Forms 4506 and/or 8821
- First payment letter
Be sure to save all documents you receive at closing for future reference. While it’s tempting to move quickly through closing to get into your home, this is not the time to rush! Be sure to thoroughly review all documents before you sign, and ask questions as needed.
How Long Does It Take To Close on a Mortgage?
Most mortgages will be closed within 30 days, however if you are participating in a specialized mortgage program for first-time homeowners, it could take up to 45 days. You may be able to close sooner if you went through the mortgage pre-approval process, because key details have been verified up front.
Where Do You Go From Here?
You’re in your new home! While you can breathe a sigh of relief, our commitment to you doesn’t end when you sign your final loan documents. We offer many resources and tips to help you manage your mortgage and remain a successful homeowner. First step? Learn what to expect when you’re making your monthly mortgage payments.
All loans are subject to approval.
Equal Housing Lender. Santander Bank, N.A. (NMLS# 494788) is a Member FDIC and a wholly owned subsidiary of Banco Santander, S.A. © Santander Bank, N.A. All rights reserved. Santander, Santander Bank and the Flame Logo are trademarks of Banco Santander, S.A. or its subsidiaries in the United States or other countries. All other trademarks are the property of their respective owners.