When you’re buying your first home, the very last step of the process is closing on the first home buyer loan. Also called the settlement, this is the part of the process that settles, closes, or completes the process. When you work with mortgage lenders in Georgia, they can let you know what to expect during this process, but here’s an overview.
Who Comes to the Closing?
The exact people who come to the first home buyer loan closing vary based on the situation, but the following people may need to be there:
- Your real estate agent
- A rep from the title insurance company
- Someone from the escrow company
- Your attorney or legal representation
- The seller’s attorney or legal representation
- A representative from your lender
Some states don’t require you to have a legal representative present, but even if they are not required, you may want to have someone there representing your best interests. Additionally, if you’re using owner financing, you don’t need a lender representative there.
What Documents Do You Sign?
Again, the first home buyer loan documents can also vary based on your situation, but they tend to include the following:
- Loan Estimate — This is the document that explains the key terms of the first home buyer loan. Typically, mortgage lenders send you this document a few days after you get approved for the mortgage.
- Closing Disclosure — This document includes all the final terms of the mortgage. It explains closing costs and who the money goes to. Typically, mortgage lenders send you this document a few days before the actual closing.
- Notice of Right to Rescind — You don’t receive this form if you’re buying someone else’s house. It only applies to home equity and refinance loans, and it gives you three days to change your mind after signing the paperwork.
- Initial Escrow Statement — This lists the charges that are going to be taken out of the escrow account during the first year. That typically includes estimated taxes and insurance premiums as well as other charges from mortgage lenders.
- Promissory Note — This also lists the details of your loan such as the amount, interest rate, payment due dates, length of the term, address for payments, and any other relevant details.
- Mortgage or security instrument — This document gives you an overview of your obligations and it outlines when the lender can foreclose on the home.
In addition to these common documents, there may be other documents required by your lender or by your county.
How Much Are Closing Costs?
Closing costs also vary. Make sure to talk with your lender so that you understand what the closing costs are. Then, make sure you bring those funds to the closing in the required form. The funds may need to be verified, meaning you may need a bank draft or a cashier’s check.
The actual closing may include all these people around a table signing documents, or the process may happen remotely over a few weeks. To get started on this process, contact us. BrightPath mortgage lenders in Georgia can help you get into your dream home.