Closing – Part 5
Closing is the final post to our five-part series on preparing your client for what to expect during the mortgage process. We hope you will share the full series with your clients so you can move through the process with ease.
If you’d like the full document of this series, please comment below or email us at firstname.lastname@example.org and we’ll happily send it to you.
At the closing point, the lender will contact your solicitor to instruct them on the final conditions for closing. This will include how the funds should be disbursed. Your solicitor will be in direct contact with you to confirm your closing date. This is when you will sign the final documents and funds will be transferred.
Your solicitor’s role in closing
Depending on your personal circumstances and the conditions of your commitment, your solicitor will be asked to provide your lender with some or all of the following documents. Discuss these with your broker ahead of time to make sure your solicitor has everything they need at the time of closing. The documents are:
- A signed pre-authorized debit (PAD) form to set up your regular mortgage payments.
- Title insurance policy.
- A copy of the property’s title (to ensure there are no outstanding liens).
- Proof of paid personal taxes and city taxes (unless some mortgage funds are going towards paying them off).
- Proof of subject property insurance (fire).
- Proof of identification.
- A payout statement to confirm the amount owing on your current mortgage.
The day of closing
You will meet your solicitor on the agreed day of closing (this is usually determined by you, or if you’re buying a home, in agreement with the seller). Your solicitor will have you sign all necessary final documents. Once this is done, your solicitor will disburse the funds to the seller of the property or your previous mortgage lender and any other creditors, if instructed. Your first mortgage payment will start on the date outlined in your commitment.
That’s it, you’ve done it. With the help from your broker, surprises should be limited and your stress level should remain low. Congratulations!