Closing

At closing, your participation will be twofold:

• Sign legal documents. This falls into two categories: the agreement between you and your lender regarding the terms and conditions of the mortgage and the agreement between you and the seller transferring ownership of the property. Be sure to read all documents carefully before signing them, and do not sign forms with blank lines or spaces.

• Pay closing costs and escrow items. Borrowers handle the numerous fees associated with obtaining a mortgage and transferring property ownership in one of two ways: they either roll them into the principal balance of the new loan or agree to pay higher interest rates and have their lenders foot the bill. Some buyers may have to pay these out-of-pocket fees.

The closing agent conducts the settlement meeting and makes sure that all documents are signed and recorded and that closing fees and escrow payments are paid and properly distributed.

Closing documents

You will receive the following important documents:

Congratulations!

Once you've reviewed and signed all closing documents and the sellers have their money (funding), the house keys are yours and you will have successfully bought your new home!
 

What if you are turned down for a mortgage
Here are three things to do right away:

3 things to do right away

1. Find out what happened.
Your lender has 30 days from your application date to explain in writing why the loan was denied. This explanation, called an "adverse action notice," must state a specific reason for the denial. It also will tell you which federal agency to contact if you think the lender or mortgage broker has illegally discriminated against you. The good news is that the three most common reasons for denial can be corrected in time: insufficient down payment, excessive debt and poor credit history. You can apply again once you have saved more money, paid down your car loan or credit card debt, or raised your credit score by diligently paying your bills on time for a while.

2. Request a second opinion.
Some lenders offer a second level of review for mortgage loans to which you can plead your case. You may yet qualify if you can convince the secondary loan reviewer that your credit history was marred by an isolated cataclysmic event, such as unexpected hospital bills that ruined your finances.

3. Keep shopping.
Just because one lender turns you down doesn't mean there aren't a dozen ready to approve your loan. Banks and mortgage companies set different underwriting criteria based on their own business objectives. Find one that's right for you.
 

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Note: Most of the information is based on Real Estate transactions in Texas and may not pertain to another state.

Information is believed to be accurate but is not guaranteed