Housing Services Resources

Buying a Home...1, 2, 3: The Closing Process

What is Closing?

The Closing is the final step in obtaining your mortgage, and it is when ownership of the home is transferred to you. In Oregon , it is uncommon to have a formal closing meeting so, instead of being an event, closing is a process.

Closing Process Overview

• The lender creates loan documents based on the conditions in the Commitment Letter. Instructions for closing are prepared for the closing agent.
• The closing agent assembles the closing documents, creating a closing packet.
• The closing agent contacts al parties involved to set appointments for closing.
• The seller signs all pertinent documents and provides a notarized deed.
• The buyer signs all pertinent documents and submits a cashier’s check for the monies due.
• The closing agent sends the packet to the lender.
• The lender reviews the packet. If all is in order, the lender issues a check for the purchase and authorization to record the deed, deed of trust and the note.
• The closing agent has the warranty deed and deed of trust recorded in the appropriate county office.
• The home is now officially transferred to you, the new homeowner!

What are closing costs?

Closing Costs could include fees for:

• Loan application and credit report
• Title search and insurance
• Property appraisal
• Inspections
• Advance Interest Payment
• Reserves for Mortgage Insurance, Homeowners Insurance and Property Taxes
• Recording and tax service fees
• Points

What documents will you sign at closing?

Closing documents will include, but not be limited to:

• Settlement Costs — itemized services and charges to the buyer and seller.
  
  
• Mortgage Note — your promise to pay the lender.
  
  
• Mortgage — legal document that secures the Mortgage Note.
  
  
• Deed — legal document that transfers ownership of real property.
  

What do you need to do before closing?

It is important to be aware of the things you need to do before closing and to do those things in a timely manner so that they do not delay your ability to close. Here are some examples:

• Know what your closing expenses will be and have a cashiers check prepared to bring to your closing appointment
• Consult with your real estate agent and/or attorney regarding the transaction
• Arrange for a general home inspection (if it doesn’t include inspection for dryrot and pests, schedule an additional inspector)
• Arrange for title insurance protection.
• Purchase homeowners insurance (and flood insurance if applicable) and be prepared to bring proof of insurance to your closing appointment.
• Make a final walk through to determine that all agreed upon repairs and other contingencies have been done.
• Review all closing documents and your sales agreement.
• Be prepared to bring your photo ID and social security card to the closing appointment.

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