Page 41 - Your Home-Buying Packet:

WHAT TO EXPECT AT CLOSING

Your big day
Plan on spending at least two hours at the closing agent’s office. You might get out in one, but
don’t bank on it. Have a snack first and don’t be shy if they offer you water or coffee. You’ll need
to keep your mind alert because every one of those forms is kind of important. This may seem easy
because you come into the room a little jazzed and nervous. But the process will wear you down
and you’ll be tempted to just blindly sign every piece of paper they put in front of you. Don’t.
You may be wondering why you need to go in and sign in person at all. After all, we’re getting
used to handling pretty much everything online. It’s allowed now by the federal government and
someday it may become the norm. But for now, physical signatures are still preferred to ensure
that everyone has been able to read and verify the documents.

Who’s going to be there?
In some parts of the country, the buyer and seller sit down together at closing. In other areas, you’ll
never set eyes on your seller as you each have a separate appointment. In NJ, the buyer & seller
often close on the same day – and at the same table, but this also varies. There are advantages to
having both parties present. For instance, any last-minute issues that may arise can be resolved
quicker with both parties present. The closing agent is usually a title officer, an escrow company
officer or an attorney. The important thing is that the closing agent is a neutral third-party who as
the knowledge and training to get everything completed correctly. You and the seller agree on the
closing officer as part of the original offer on the home. In addition to the closing agent, you may
also have your real estate agent or an attorney present, especially if it’s your first home. In a few
states, an attorney must be present at closing.

What should you bring?

In addition to patience, you absolutely must have the following:

Photo ID: The closing agent must verify that you are who you say you are. A driver’s license or
current passport will do. A Costco membership card, not so much.

Cashier’s or certified check: This is to cover any down payment and closing costs you owe. Do
not bring personal check or cash. You’ll know exactly how much to get the check made out for
because federal law requires that you be told the amount you need to bring to closing at least one
day before settlement. The closing agent will tell you whether you need one check or two and to
whom they should be payable. If you want to wire the funds instead of getting a certified check,
make sure you do it a couple of days in advance, to protect against any glitches at the bank that
could delay your closing.

Proof of insurance: The closing agent needs to see proof that you have the insurance in effect on
closing day and a receipt showing you’ve paid the policy for a year. They may have already
collected that, but it doesn’t hurt to bring your own copy just to ensure things go smoothly.

Final purchase and sales contract: Just in case you need to double-check a detail against closing
costs.