In preparing for your closing, you should anticipate that there will be certain standard information and documentation that you will need to provide to your closing attorney either prior to or at the time of your closing. If you are the purchaser in the transaction, you should expect to provide the following:
* Homeowners insurance
All mortgage lenders require that you provide at closing evidence that you have obtained homeowners insurance on the property that you are acquiring. You will need to provide an original declarations page which shows that coverage is in effect for one year from the fate of closing, that the coverage limits for the insured dwelling equal or exceed the amount of your mortgage loan, and that your lender is properly identified as the loss payee under the policy. You will also need to provide a paid receipt for the first year’s premium or an invoice for this premium that can be paid at closing. If you have any questions about whether the documentation that you have received from your insurance agent will suffice to satisfy the requirements of your lender, you should provide your insurance documentation to your closing attorney prior to closing for his or her review. Keep in mind that copies of this documentation are generally not acceptable for purposes of your closing, and that failure to provide the required original documentation can sometimes delay the completion of the closing.
* Lender-required underwriting conditions
Your mortgage lender may require you to provide, at or prior to closing, documentation that the lender needs to complete the approval of your loan application. Common examples of these are a copy of a settlement statement confirming the sale of a previous residence, letters of explanation from you regarding information that may have been included in your credit report, copies of bank statements or pay stubs that you may have received since the time of your loan application, and original gift letters confirming that a portion of your down payment was a gift from an immediate relative. It is usually a good idea to contact your mortgage lender the day prior to your closing and inquire if there is any further documentation that you will need to provide at closing.
* Funds required for closing
The portion of your down payment that you need for your closing will have to be delivered to the closing attorney in the form of a wire transfer of funds. It is frequently difficult for the closing attorney to provide in advance the exact amount that you will need for your closing. If you are unable to get an exact figure prior to closing, it will usually be acceptable for you to obtain certified funds in the amount that your lender has estimated for you in your Good Faith Estimate of Settlement Costs. While most closing attorneys will accept personal checks for limited amounts (usually $500-$1,000), you may want to obtain your certified check in an amount in excess of what you expect to need, and the closing attorney can refund the excess funds from the closing.
