Purchasing a home in Texas is an exciting time. Whether it is your first property purchase or not, the process from contract signing to closing may seem to drag.
It helps to understand what happens at closing and how to prepare. The team at Kelsey, Kelsey & Hickey, PLLC aim to do just that. We want to give you a basic overview of what you need to ensure you receive the keys at closing and not more headaches.
Mortgage closing preparation
It is likely you obtained financing for the home purchase. A mortgage is a loan used specifically to purchase residential property. It is not always easy to qualify for a mortgage, but doing so is often crucial to closing. To get a loan, you must often do the following:
- Provide income verification – prove you have income that will cover the mortgage
- Calculate assets and debts – show all assets and debts
- Have a downpayment – you typically need certified funds to put down on the loan
Mortgage lenders require a constant update of your financial information from contract signing to the closing date. You may have to provide them with current paystubs and bank statements periodically, plus other required documentation such as proof of homeowners insurance, home appraisal and title insurance.
Mortage closing first
When you arrive at the closing, the loan closes first. The purchase price must fund from the mortgage company to the seller before you can take possession of the home. You may sign several documents pertaining to the loan, culminating in the execution of the promissory note. This recorded document details your legal obligation to pay for the loan within the timeframe agreed to by you and the lender.
Real estate closings, especially those involving lenders, may feel overwhelming and stressful. For more insight, please continue to our website.