IN CLOSING:

How to Seal the Home-Buying Deal

Sign that paperwork. Write those checks. Get those keys!

The closing. It all comes down to this. The grand finale.

Once you have the keys, the house is yours. (Cue: Air horn sound!)

Nice work getting this far. You’re almost a homeowner! Let’s run through some questions you may have as you cross the finish line.

What Does “Closing” Mean?

The close or settlement is when you sign the final ownership and insurance paperwork and get the home’s keys.

The closing process technically begins when you have signed a purchase and sale agreement. That agreement should specify a closing date. Typically — from the signing date to the closing date — closing takes four to

six weeks. During this time, purchasing funds are held in escrow, where your money is safe until the deal is officially done.

What’s a Closing Disclosure?

Lenders must provide borrowers with a Closing Disclosure, or CD, at least three days before settlement. This form is a statement of your final loan terms and closing costs.

You have three days to review the CD. Compare it to the Loan Estimate you received shortly after you applied for the loan. For info on Closing Disclosures and Loan Estimates and to find sample forms, visit: (https://www.consumerfinance.gov.)

The point of this formal review process is to ensure there are no surprises at the closing table. If there’s a significant discrepancy between the Loan Estimate and CD, notify your lender and title company immediately. Depending on what the underlying issue is, the closing has to stop and a new closing disclosure must be sent out with a new three-day review period.

There are a couple things on the LE that can’t change by the time you get the CD — namely interest rate and lender fees.

Some items can change by only 10% (fees paid to local government to record the mortgage might be one); and others can change without limit, like prepaid interest, because it can’t be predicted at the start of the loan process.