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Step 8: Closing your mortgage loan

After locking in your rate and points, you’re close to the finish line. The last step is closing, which will likely include writing a large check to your lender.

Closing requires a great deal of paperwork. You should keep your records organized and also ask your lender about documents you might need, though everything should be taken care of regarding your loan at this point. Make sure to ask your lender to send you the Settlement Statement a few days before closing so you have time to review it.

Before signing, review all your loan documents, especially your Settlement Statement, which is also called a HUD-1. (The HUD stands for Housing and Urban Development, the federal agency responsible for the statement.) This is your final account of

all of the costs and figures related to the deal. Many of the fees listed in the HUD-1 form also have been included in the Good Faith Estimate (GFE) of mortgage costs that you have already received from your lender; however, the HUD-1 amounts are final.

You may find some of the HUD-1 figures are different from those in your GFE. This could be because third-party fees such as appraisal fees ended up being slightly different than originally estimated. However, if there are large discrepancies, or new fees that weren’t in the GFE, check with your lender to see if there’s a mistake that needs to be corrected.

Once you sign the loan documentation and write your check for closing costs and your down payment, the home is yours!

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