Mortgage Closing Overview

The Mortgage Closing phase is typically the final step in the mortgage lending process, where the borrower and lender complete the transaction. During this phase, the mortgage loan is finalized, and the property title is transferred to the borrower.

Here are the key steps involved in the Mortgage Closing phase:

1. Schedule the Closing: The borrower, seller, and closing agent will agree on a date and time for the closing. The closing is typically held at the closing agent's office, but it can also be done remotely.

2. Review the Closing Disclosure: The Closing Disclosure is a document that provides an itemized list of the final closing costs and details of the mortgage loan. The borrower must review and approve the document before closing.

3. Sign the Loan Documents: The borrower will sign the loan documents, which include the mortgage note and the mortgage deed of trust or mortgage. These documents will be filed with the county recorder's office to secure the property title.

4. Pay the Closing Costs: The borrower must pay the closing costs, which typically include loan origination fees, appraisal fees, title insurance, and other fees associated with closing the mortgage loan.

5. Fund the Loan: Once all the loan documents are signed and the closing costs are paid, the lender will fund the mortgage loan. The funds will be transferred to the seller's account, and the property title will be transferred to the borrower.

6. Record the Deed: The closing agent will record the mortgage deed with the county recorder's office. This officially transfers the property title to the borrower and secures the lender's interest in the property.

7. Receive the Keys: After the closing is complete, the borrower will receive the keys to the property and can take possession of the home.