When purchasing a house in Florida, most people finance their new home with a mortgage loan. The final stage of this process, according to the Consumer Financial Protection Bureau, is the mortgage closing.
After this event, the loan becomes final, and the lender distributes the funds. This typically happens at the same time as the home purchase closing. Here are some actions to take in advance that may help prepare for the closing.
- Determine who will be there
People who may be present or involved in this process include the buyer’s title insurance company and attorney, the seller’s attorney, the realtor and an escrow company.
- Request documents three days before the date of closing
The CFPB notes that by law, the buyer must receive the disclosure documents three business days ahead of the closing date. In addition to the disclosure, there will also be the promissory note, mortgage and deed. These documents and others should be reviewed carefully for errors, and the buyer should also take the time to become familiar with all of the terms included.
- Compare closing disclosure to current loan estimate
The law states that only certain expenses may change. The buyer should check to see if the interest rate, monthly payment and loan type and terms are what he or she expected. Unexpected fees or fees that change significantly may be a red flag.
- Beware of mortgage closing scams
Scammers may send out emails stating that there are last-minute changes to the buyer’s wire or payment instructions. It is a good idea to have the names and numbers of two people who can be trusted to confirm that any changes are legitimate and not the work of scammers.
- Arrange payment for the day of closing
The buyer should take care of the wire transfer or get a cashier’s check in advance of the closing for the exact amount necessary to close.