Congratulations! Closing on your home is the final step of the home purchase process. You will receive a copy of the closing documents three days prior to your actual closing date and you will be able to review those documents with your lender before you close. When you attend your closing, your lender, the seller, their agent, your agent, the title company, and the closing agent will all be there too.

*Be sure to bring your photo ID and a cashier’s check or proof of wire transfer for closing costs or down payment if required.

What are closing costs?

Closing costs, which are due the day you close on your house and sign all needed paperwork, are in addition to your down payment. It is important to become familiar with and budget for these added fees so that you are prepared on closing day. Before you close, you will have a few tasks, and your lender, and agent will help you complete them.

Things to remember:

• Purchase a homeowners insurance policy
• Review the closing disclosure and bring any errors or questions to your lender’s attention
• Confirm with your lender how much money you will need to bring to your closing and what form of payment is acceptable.

Closing costs include the following:

• Origination: A fee for your lender to create the loan
• Transfer Taxes: A tax on the transfer of the house’s title from the house’s seller to you (where required by local jurisdictions)
• Recording Fees: A fee for recording your house purchase in public records
• Title and Attorney Services: Fees associated with a title search, examination, and insurance. Some states require an attorney to be present at closing.
• Appraisal: A fee for the appraiser to assess the value of your chosen house.
• Credit Report: A fee for running a report on your credit when assessing your ability to pay off the loan.