couple signing contract

Picture this. You’re close to the finish line. You've found the house you want. Made an offer, which was accepted. The house passed inspection and appraisal with flying colors. You've submitted all of the required documentation, and you're more than ready to be a homeowner. Exciting. However, you still have one final process to get through before you get your keys – closing.

Closing can be exciting, and yet nerve-wracking at the same time, because it's always the last thing standing between you and your house. After all, nothing in real-estate is over until the file is closed. But, as long as you've done everything right and you are working with a great agent and mortgage provider, closing should be a breeze. We've broken down the closing process below to give you a better understanding of it and the confidence to get through it.

Important Steps Before Closing

There are some things a home can't live without. Or more specifically, things you can't live in a home without. That would include your utilities —internet, electric, gas, water, etc. It's important to arrange for utilities to be transferred accordingly, effective on the closing date. Also, we highly recommend you perform a final walk-through of the home a day or two before your closing date.

What To Expect During Closing

The entire mortgage application and real estate transaction works toward the closing of the deal. And it can take some time to complete -- typically 30 to 45 days from when your loan begins processing. But what happens on closing day, exactly? Traditionally, it's when all parties gather around the table and sign off on everything. This "day of" process usually takes an hour or less, depending on the transaction details. You'll want to make sure you have a photo ID with you, and any funds required for closing.

Closing costs are typically required before becoming the legal owner of a house, condo or townhome. These costs can include:

  • Origination fee

  • Underwriting fee

  • Appraisal fee

  • Credit report fee

Whether you find yourself purchasing a new home or refinancing an existing mortgage, closing costs need to be paid at closing. And don’t worry, you will know the amount due before coming to the closing table.

When is My First Payment Due After Closing?

After closing, you can officially celebrate your entrance into the homeowner's club! But don't forget … you now have a mortgage payment.

Generally, your first payment is due the first day of the month, following the 30-day period after closing day.

In short, if you purchase your house mid-month, you won’t have a mortgage payment the following 1st of the month, but the 1st of the next month. In the meantime, relax. You just put a lot of money down, so now is your time to breathe a little easier.

What if My Homeowner's Insurance Changes?

You can choose a new homeowners insurance provider after you've closed on a purchase or refinance, and the escrow impound account has been established. You or your lender do have the option to change insurance providers at any point during the time you have an escrow impound account.

A lender may be forced to change insurance policies if you have made changes to the policy that don't meet the lender's minimum requirements, or fail to make the required monthly mortgage payments and escrow impounds.

After Closing We Are Still Here!

Guardian Doesn't Sell Your Loan

It's common after closing that the mortgage originator sells your loan to another provider to service your loan. When lenders choose to sell loans, they are really selling the servicing rights to them. At Guardian, we do not take this approach. We value our customers and choose to provide the needed support by servicing customers’ loans long-term.

Finding a home you love can be hard enough. Throw in the complexities of the mortgage process on top of the stress of the closing process, and you've got yourself one wild ride. This is why the trusted team of a mortgage professional at Guardian aims to help make it as smooth and seamless as possible. So, when you've finally closed and have the keys to your house, you can relax and pat yourself on the back. But don't relax for too long – you’ve got unpacking to do!