The “closing” is the last step in the process of buying and financing a home. It’s when you and all the other parties in a mortgage loan transaction sign the necessary documents. The closing of your loan is the time when your loan becomes final and the funds are distributed and when you become owner of your new home.
Your closing will include your title insurance company, your lender, your attorney if you hire legal representation for your closing, your real estate agent and the agent for the seller.
In Maine it is customary for all the parties to sit around a table and sign all the documents at once. Sometimes the closing may take several days if the signatures of each party are collected separately. Some companies allow you to electronically sign documents, either in advance of closing or at the closing table. A closing may even be conducted by mail or even on the internet.
Regardless of who performs the closing or where it occurs, you will be committing yourselves to abide by the documents you sign that will have lasting financial implications on your life. Although it’s unlikely you will have the time to read all the loan documents, don’t sign if you suddenly realize you can’t make the payments or until you fully understand the loan terms.
Enjoy your new home!