When it comes to a mortgage loan and homebuying situation, there are few days or periods more important than closing day. This is the period directly following your mortgage being approved and your offer being accepted on the home you are purchasing, and it includes several major documents and other themes that help transfer property ownership and begin your new homeownership journey.
At VIP Mortgage Inc, we’re proud to offer a huge range of mortgage services, from the best mortgage rates in Phoenix and Tempe to assistance with program qualification, cost considerations and closing factors. In this two-part blog, we’ll go over everything you need to know about closing day itself, from its purposes to how to prepare yourself.
While closing day represents the final day of the closing process, and the one where you finalize many documents and become the legal owner of your new home, this process actually takes a little while. Most mortgage and homebuying closing processes will take between 30 and 45 days.
Why so long? Well, because several important areas need to be covered here. For one, your bank will be reviewing and putting your mortgage application through the underwriting process. For another, your offer to the current property owner must be accepted, and then the home must be appraised to ensure neither side is being ripped off during the transaction. Finally, several financial areas will need to be confirmed, including the transfer of the property deed itself.
Generally speaking, during normal times at least, most closing days will be carried out in person. The important principles in the sale will all gather in the same place, almost always the home to be sold, and various documents will be signed and organized.
However, as you’re surely aware, these are not normal times. There are increased risks of disease spread due to the COVID-19 outbreak that might make in-person closing less desirable. For this reason, many banks and lenders are offering virtual closing options – some offer these regularly as well. They may take a bit longer to organize everything, but modern online document formats actually mean this process is often just as expedient as an in-person closing.
Whether you’re closing in-person or setting up a virtual session for this purpose, here are some of the documents or items you should be sure to have on-hand for closing day:
For more on closing day and how to prepare, or to learn about any of our mortgage loan services, speak to the staff at VIP Mortgage Inc today.