Learning how a real estate closing works can prevent errors

On Behalf of | Aug 7, 2023 | Real estate disputes, Real estate law |

If you’re buying a dream home in Idaho, you’ll go through many steps. The last step, known as closing, usually occurs about four to six weeks after signing a sales and purchase contract. It completes the transaction and solidifies your purchase. Understanding the closing process can help you know what to expect.

Review the closing disclosure

A minimum of three business days before your closing date, you should receive a form listing the final details about your home purchase. It’s critical to ensure the title is clear and review the closing disclosure, looking for errors.

Examine your closing disclosure carefully

The terms for your loan and closing costs will be listed on your closing disclosure, showing what you’re responsible for paying. These should include the

  • Loan term. This refers to the timeframe your home loan will last, which is typically 15 to 30 years.
  • Loan type. You will choose between a fixed or adjustable-rate mortgage (ARM).
  • Interest rate. This is the interest rate you locked in for your mortgage.
  • Estimated total monthly payment. Your total monthly payment is estimated as it can change if you choose an ARM.
  • “Cash to close” figure. This is the money you must use to close the deal. It includes your down payment and closing costs and is typically paid via a wire transfer or cashier’s check.
  • Estimated insurance, taxes and other payments. These include homeowners’ insurance and property taxes.
  • Closing costs. These can include the credit report and appraisal. You may also have lender’s fees, such as underwriting or application fees.

Reviewing the closing disclosure is critical to ensure each figure is correct. Once you’re satisfied, and the paperwork is signed, you must complete the process by paying.

Paying with a wire transfer or certified check

When purchasing a home, you can’t use a personal check. Instead, you’ll pay using a wire transfer or certified check.

Ensuring all the information is correct during the closing process should provide peace of mind and help eliminate problems. Be sure to safely store all your documents once the closing has been completed. The next step is to move in and meet your new neighbors.