At Your Closing

The final step in the home purchase is closing (settlement). Your sales contract sets the number of days until you close, typically 30-90 days on existing homes. (New construction contracts may be much longer.) Before closing, take a final walk through to make sure the house is in the same condition it was when you agreed to buy it.

A day or so before closing, your lender will give you a HUD-1 settlement statement listing all closing costs. Review the buyer's costs and payments carefully. Call your lender if you see major differences between the good faith estimate and the HUD-1 statement.

Go to closing with a certified check in the amount called for on your HUD-1 form, a photo ID and extra personal checks. You'll be asked to sign many papers. Review each document carefully before you sign'mistakes can be costly. If necessary, ask someone you trust to go with you to the closing.

At closing, you'll pay a pro-rated portion of the property taxes and utilities such as electric, gas or fuel oil. The lender may also require you to pay for homeowner's insurance and interest from the date of closing until your first mortgage payment is due.

When all the papers are signed, you'll get the keys to your new home.

Consumer Action's Housing Information Project created this brochure in partnership with Capital One Services, Inc. © 2007 Consumer Action. Rights Reserved.