Buying a home is a series of steps. Each one serves an important purpose and depending on the pace and circumstances of your home-buying experience, some of these processes may overlap with others.

While searching for a home and attending open houses are two very exciting processes you and your family will enjoy, it’s also important to know what to expect during other phases that involve numbers, legal documents and a third-party.

The loan closing process is the last step you take on your journey to homeownership.

Here are five key steps that happen during the loan closing process.

Underwriting

During this step, underwriters confirm information through documents that support your financial status and claims. This may include calling your employer to verify employment and salary, for example. If you are self-employed, the verification process may take slightly longer.

Appraisal

When you find a home, and enter into contract, the lender will appraise the property to ensure that the house is worth the amount it will lend. The lender’s independent appraisal could have an impact on your rate and terms. The estimate you received should fall in line with the finalized costs, barring any big surprises.

Title Research

Following the appraisal, the title company will examine the home’s past. The main reason for this discovery is to ensure that no liens are held against the home. The title company will look for things like pending litigation and past-due tax payments. Once everything comes back clean, the title company will deliver a policy that breaks everything down in order to protect both parties.

Sign Legal Documents

At the tail end of this important process, you will have some legal documents to sign. You can expect to sign off on borrower-lender documents and borrower-seller documents.

The conditions of the financing terms are set in stone with your signature. Before this happens, make sure to ask any questions and carefully read the agreements and terms.

Pay Closing Costs

There are some fees you will need to pay when you close on your home. These costs can include fees for underwriting, title search, appraisal, inspection, credit report, loan origination fees, insurance and more. Though it can vary, a good rule of thumb is to expect to pay between 1 and 1.5 percent of the purchase price in closing costs.

If you are wondering if Guarantee Mortgage is the right lender for you, we won’t simply ask you to “trust us,” because trust as we define it has to be earned. We want to earn your trust! Give us a call at 866-612-5050 or request a free consultation with an experienced Loan Advisor. The consultation usually takes between 15 and 30 minutes.