Congratulations! Your offer has been accepted, and you’re officially under contract to buy your Michigan dream home. While it might feel like the hard part is over, there are still a few important steps to navigate before you can officially call yourself a homeowner.

What happens between now and closing day?

• Loan Disclosure Review: You will receive detailed loan disclosures from your lender outlining the terms of your mortgage, including the interest rate, monthly payments, and any fees. It’s crucial to review these documents carefully and ask your lender any questions you may have to ensure you fully understand the terms of your loan before proceeding to closing.

• Appraisal: The lender will order an appraisal to determine the fair market value of the property. This is crucial to ensure the lender isn’t lending more money than the house is actually worth.
• Final Mortgage Underwriting: The lender will conduct a final review of your finances and verify all the information you provided in your loan application.
• Title Work: The title company will conduct a thorough search of public records to ensure there are no claims or liens against the property. This helps protect you and the lender.
• Repairs (if necessary): If the home inspection reveals any issues, you may need to negotiate with the seller to have them repaired before closing.
• Home Re-Inspection: This is a crucial step to ensure any repairs you requested based on the results of the home inspection have been completed to your satisfaction.
• Final Walkthrough: A few days before closing, you’ll have a final walkthrough of the property. This is your chance to make sure everything is in the same condition as when you made the offer and that any agreed-upon repairs have been completed.
• Final Closing Disclosure: At least three business days before your scheduled closing, you will receive the Final Closing Disclosure. This is an extremely important document. It details the exact costs you will pay at closing, including your loan terms, monthly payments, and all fees from all parties involved. You must review this document with meticulous care. Compare it to your initial loan estimates and ask your lender immediately about any discrepancies or charges you don’t understand. This federally mandated timeframe is designed to give you time to catch errors and ensure you are fully aware of your financial obligations before you sign the final paperwork. Do not hesitate to reach out to your lender or your real estate agent if anything looks different than expected.
• Signing the Closing Documents: On closing day, you’ll meet with a closing agent (often an attorney or a representative from the title company) to sign all the necessary documents. This includes the mortgage agreement, the deed (which transfers ownership to you), and various other legal documents.

What documents will you need to have on hand for closing?

• Photo Identification: Bring a valid driver’s license or passport.
• Certified Funds: You’ll need to bring a certified check or wire transfer for your down payment and any closing costs you’re responsible for.

Tips for a Smooth Closing:

• Stay in Touch with Your Lender and Agent: Keep in close communication with your lender and real estate agent throughout the process. They can answer your questions and keep you updated on the progress.
• Get Your Finances in Order: Make sure you have all the necessary funds ready to go before closing day.
• Read All Documents Carefully: Don’t rush through signing any documents. Make sure you understand everything before you sign. If you have any questions, don’t hesitate to ask the closing agent.
• Ask Questions: If you’re unsure about anything, don’t be afraid to ask questions. This is a big step, and it’s important to feel confident about every part of the process.

Closing day is a big milestone on your journey to homeownership in Michigan. Remember to stay organized, ask questions, and celebrate this exciting achievement!

Ready to navigate the final stretch to closing day with confidence?

As a mortgage lender, I can help you understand the process and answer any questions you might have. Feel free to reach out to discuss your specific situation and ensure a smooth and successful closing. Let’s get you the keys to your new Michigan home!