Once you get to your mortgage closing, the rest of the process is fairly straightforward. Just shake hands with your lender and sign the final loan paperwork she's prepared. Though most of the process is complete, you still might have a few final details to tie up before you close on your new mortgage.
Seller's Assistance
Some mortgage lenders allow you to get what is called seller's assistance from the seller of the home to help you close the loan. The seller's assistance covers a percentage of the closing costs -- usually up to 6 percent of the home purchase price. Sellers do this to make it easier for the buyer to afford your costs at closing. If this is a part of your deal, make sure you communicate this information to the lender well before closing, so that it's included in your final paperwork and you have the correct estimate of how much to bring to the table.
Good Faith Estimate
About three days after you apply for a mortgage loan, you receive the good faith estimate. The purpose of a good faith estimate is to give you an idea of the estimated terms of the loan, including the interest rate. The lender then locks your rate for a certain number of days, usually about 30 to 60 days, so it should remain the same for that period (make sure you get this lock-in confirmation in writing). Contact your lender a few weeks or more before your closing date, when the loan paperwork is finalized, to double-check that the quoted rate is the same. If not, find out why. You may decide to pursue a different loan in advance of closing if an issue arises.
Schedule Closing Date
To save money on interest, you should try to schedule your closing date as close to the end of the month as possible. The lender charges you prepaid interest as a part of your total closing costs for each day before the end of the month. The interest charge is prorated, so the earlier in the month you close and move in, the more prepaid interest you'll pay.
Review House
One mistake some new buyers make is failing to do a final review of the home before going to closing. A day before the closing date or the day of, you should visit the house with your agent to do a final look through the property to ensure that it's clean and consistent with the terms of your sales agreement. If something is not taken care of per your agreement, you can take that information with you to the closing table to seek an adjustment. For instance, if the seller left furniture or a significant amount of trash in the home, you can ask for a small adjustment for the cost of removal at the closing table.
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