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Closing Escrow on Your Home: Step-by-Step
by Jonathan Haeber
jonathan.Haeber@californiamortgagerate.com
California Mortgage Rate Columnist
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I'm sure many of you remember going in to get your driver's license. Closing escrow on your home mortgage and title is a lot like that. Your hand will cramp up; your eyes will start to blur from all the reading. You will never sign and date so many times in your life--trust me.
Before you take the plunge on closing your home mortgage and title, you should follow these simple tips:
- Get Your Rest: Goodness knows you rested when you took your SAT. A home mortgage has a lot more at stake--hundreds of thousands of dollars--so make sure you get at least eight hours of rest the night before closing. You'll need the mental fortitude.
- Time it Right. Nobody wants to pay both mortgage and rent at the same time. Chances are, you can't afford it. When you close your home mortgage and title, timing is everything. You don't want to close too soon, or you'll end up paying both rent and mortgage (if you were a renter before buying). If you close too late, your home mortgage rate may no longer be locked and you may not provide enough planning time for the move before your lease expires.
- Check your Numbers. Mistakes do happen in the paperwork. Make sure the home mortgage interest rate provided to you by your broker is correct compare the "Truth in Lending" statement with the "Good Faith Estimate" provided to you by your mortgage broker earlier.
- Bring the Green. Nobody gets a free lunch, and you'll be expected to bring a pretty penny the day of closing-- often in the form of a cashier's check or wire transfer. The title company will inform you of the total amount you need to bring, which includes taxes, closing costs, and your agreed upon down payment for the mortgage. Be on the lookout for hidden "junk" fees. Often you can negotiate their removal.
Relax! It's Almost Over!
Expect to spend about an hour signing documents, but Bankrate.com suggests that you take a half day from work. Give it some time, because time is what youll need to gather up your funds, find parking at the title company, review documents, and look closely at your home mortgage terms and conditions.
Once done, you'll be the proud owner of a new home. Then, all you'll have to do is find some way to move that clunky stove in the kitchen.
About the Author
Jonathan Haeber is a marketing writer for Discovery Channel Stores. He recently purchased his first home, and took a self-taught crash course in home mortgages. Needless to say, he's going to refinance for a 30-year fixed as soon as the banks trust him with their money.
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