 What happens at the closing?
Once your application for a mortgage loan has been approved and you have received a commitment letter from the lender, the final step before you can call the house your own is the closing, or settlement of the purchase transaction and mortgage loan. Even though you have signed purchase agreement and your loan request has been approved, you have no rights to the property, including access, until the legal title to the property is transferred to you and loan is closed. You should have a good understanding of what is involved in the closing process, because there are a number of things that you can do to make sure that it goes smoothly and on time.
At closing:
- you will sign the mortgage loan documents,
- the seller executes the deed to the property,
- funds are collected and disbursed,
- the closing agent records the necessary instruments
- you get legal ownership of the property.
The settlement of a mortgage loan is a legal process, so that specific procedures and requirements will vary according to state and local laws.
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