What Process Determines How Much Money The Buyer Needs To Bring To Closing?

Closing Day Checklist: How to Prepare For Your Closing Day

Closing day is finally here. It doesn't matter if you're buying or selling a first home or your second or third home, you're no doubt excited and ready to sign the mortgage documents and take the next step in your homeownership journey.

This day often comes with a few jitters. What if the deal falls apart at the last minute? What if I forget to bring something and delay closing?

These are normal concerns. But if you've come this far in the process and didn't encounter any problems with the appraisal or inspection, you probably have nothing to worry about. Even so, preparation can prevent holdups and ensure a smooth closing.

On closing day, the buyer and seller will both meet with a closing agent. If you're a first-timer, following the closing day checklist can help allay some of your anxiety. And if you're a seasoned homeowner, you'll find some excellent reminders below.

What to expect on closing day?

Closing is the final step to owning your home. On closing day, both parties will sign the paperwork that officially transfers legal ownership of the home to the buyer.

Closing usually takes place four to six weeks after a purchase agreement is signed. During the period between making an offer and closing, a variety of steps must happen, including the home inspection, the home appraisal, and mortgage approval. The buyer's earnest money, or the good faith deposit, will be held in escrow until all contingencies, like the home inspection and appraisal contingency, are met. All contingencies should be squared away by closing day.

On closing day, expect to sign A LOT of paperwork. It can feel overwhelming, but an attorney or title agent will be there to guide you through the process and explain each document.

Lean on your agent to help answer questions and support you through the closing process. They're serving as your advocate and are there to help you!

What to bring to closing day?

Buyers	Sellers
Identification documents	Identification documents
Certified funds or proof of wire transfer	Certified funds or proof of wire transfer (if needed)
Proof of home owners' insurance	House keys, garage remotes, mailbox keys, gate keys, and any pool keys
A copy of your contract with the seller	A copy of your contract with the buyer
Any additional documents requested by the lender

Identification documents

In all likelihood, closing day will be your first meeting with the closing agent (either a title company or an attorney). Since the agent doesn't have a prior relationship with you, it's important to arrive with the appropriate documents to verify your identity — a government-issued ID.

This can be your driver's license, a military ID, a state-issued ID card, or a passport. If you're buying a property with your spouse and you don't share the same last name, make sure you bring your marriage license to avoid any slowdowns. As a side note, your ID must be valid, so don't come with an expired driver's license or passport.

If you're buying a property as a single person but have a co-signer on the loan, this person must also be present at closing. They'll need to bring their ID and sign the loan documents with you.

Certified funds

Certified funds for buyers:

As a buyer, you will receive a Closing Disclosure form three days before closing. This form has details about your new mortgage. It will list your interest rate, the mortgage amount, your monthly payment, and the amount you'll need to bring to the closing for your down payment and closing costs.

Keep in mind that you cannot pay these expenses with cash or a personal check. In most cases, you'll be instructed to bring either a cashier's check or a certified check to closing. There's a possibility that you may receive instructions on how to wire funds to the closing agent. If this happens, please be sure to reach out to your title company. Use a phone number that you verify directly from the title company's website (do not use the phone number or web address listed within the email), to confirm that they actually sent the wiring instructions to you and to verify the instructions provided. This due diligence can help you avoid wire fraud scams that are becoming popular with cybercriminals.

If a relative or other eligible donor will gift your down payment and/or closing costs, you'll need to provide a letter from this donor stating that funds are a gift and not a loan. Speak with your loan expert during the early stages of acquiring your loan for more information on how to properly prepare this letter.

Certified funds for sellers:

As a seller, you will also have closing costs associated with the sale of your home. Closing costs for sellers are often deducted from your proceeds at closing. If your closing costs are not being deducted from the home price, you'll need to bring a cashier's check or proof of wire transfer for the closing funds.

Closing day checklist for buyers

Immediately upon acceptance of purchase contract:

Order a home inspection. Determine if you would like to add any additional inspections, such as a radon or a sewer inspection.
Provide your lender with a copy of the contract and discuss your interest rate locking options.

During the home inspection :

Take photos of the house
Take measurements for purchasing furniture, window treatments, appliances, etc.
Don't be afraid to ask the inspector any questions concerning the home's condition or to learn the inner workings of your new home.

Within two weeks of the acceptance date of the final contract:

Review the home inspection report and work with your agent to create a list of items you'd like the seller to address.
Reserve a moving truck or schedule movers.
If your lender has not already ordered an appraisal, notify them to do so if your home inspection is satisfactory.

Two weeks before closing:

Select an insurance company and decide on the amount of coverage for your home owner's insurance policy. Your lender will require proof of insurance before closing.
Touch base with your lender to determine the status of your loan and whether they need any additional information from you.
Request a change of address with the U.S. Postal Service to have your mail forwarded to your new address. You can easily change your address online. There is a small fee required to process the change, and you will need a credit or debit card and a valid email address.

One week before closing:

Set up your utilities at your new address. Contact your cable and internet providers and your power, water, and trash services, if applicable, to transfer or terminate services.
Connect with your lender to confirm that your closing date is on schedule.
Request certified funds you'll need for closing. Some funds, like stocks or home equity loans, can take up to three days to clear.
Confirm with your lender that they have received the necessary documents from your home owner's insurance agent.

Three days before closing:

Verify that any repairs that were required from the inspection have been completed. It's a good idea to obtain documentation that shows proof that the repair was addressed.
Your lender is federally required to provide you with your Closing Disclosure three days before your closing. The Closing Disclosure shows the final terms of your loan, including the final closing costs. Make sure to review your Closing Disclosure to ensure it is accurate and that you understand the figures. If you have any questions about your Closing Disclosure, talk to your lender.

Day before closing:

Conduct a final walkthrough of your home to confirm that the home is in the same condition as when it was placed under contract.
Get driving directions for where your closing is taking place and plan out how much time you need to get there.

Day of closing:

Bring a photo ID for each person on the mortgage.
Bring your certified funds.
Bring any additional required documentation.

Closing day checklist for sellers

Immediately upon acceptance of purchase contract:

Provide the current mortgage information to your agent, such as account numbers, the lender's contact information, and your personal information.
Make any repairs stipulated in the purchase contract.
Follow up on any terms detailed in the contract (providing homeowner association paperwork, clearance letters, etc.)

During the home inspection:

You shouldn't be present for the inspection, but your agent can be there as your representation.
Provide keys, codes, and anything else required to access your home.
If the home is vacant, turn on all the utilities prior to the inspection.

Within two weeks of the acceptance date of the final contract:

Work with your agent to negotiate inspection repair requests with the buyer's agent. Once you've agreed upon repairs, start the process of completing any repairs.
Reserve your moving truck or schedule movers.

Two weeks before closing:

Request a change of address with the U.S. Postal Service to have your mail forwarded to your new address. You can easily change your address online. There is a small fee required to process the change, and you will need a credit or debit card and a valid email address.
Begin gathering information about your home to give to the new owner (receipts, warranty information, owner's manuals, repair and contractor contact information, and dates of service).
Begin packing up your belongings.

One week before closing:

Contact your utility companies to schedule final readings and disconnect dates.
Gather receipts and documentation to provide proof of required repairs and give copies to your agent.
If you are required to bring any funds to the closing, request your certified funds.
Consider scheduling a cleaning company to give your home a deep clean or start the cleaning process yourself.

Day before closing:

Get driving directions for where your closing is taking place and plan out how much time you need to get there.
Make sure the home is clean and all personal belongings removed. Check cabinets, closets, and other nooks and crannies for forgotten items.

Day of closing:

Lock up the house.
Bring a photo ID.
Bring any certified funds.
Bring any keys or garage door openers for the house.

Bottom line

We understand that you may have a few closing day fears. The entire process can be overwhelming at best, but we're here to make sure everything goes as smoothly as possible. At the same time, the more you prepare for closing, the better the outcome.

If you have any questions prior to closing, don't hesitate to contact your loan expert at Cherry Creek Mortgage. We're committed to becoming your lender for life, and we're happy to be a source of education and guidance as you complete this major purchase.