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Closing Process

The closing, or settlement, is where you take ownership of your home. Your closing agent or attorney coordinates the entire document signing, as well as the collection and disbursement of funds. At that time you will review and sign the mortgage loan documents and pay the closing costs. The seller(s) and real estate agent(s) may also be present at this meeting.

Closing steps

  • Review settlement papers - Your closing agent reviews the settlement statement with you and the seller, and answers any questions. You and the seller sign the settlement statement.
  • Sign closing papers - The closing agent then asks you to sign the various loan papers, such as the mortgage note. You will need to provide evidence of required insurance and inspections at this time if you haven’t done so previously.
  • Pay closing costs - If everyone agrees that the papers are in order, you and/or the seller submit a certified or cashiers check to cover the closing costs. The check from the lender covering the mortgage amount is then submitted to the closing agent.
  • Establish escrow account - If we will be paying your annual property taxes and homeowners insurance for you, an account is established from which we will pay these bills.
  • Receive keys - You receive the keys to your new home.

Closing documents

There are several papers you'll review and sign at your closing including these.

  • HUD-1 Settlement Statement - This document provides an itemized listing of the final fees charged in connection with your loan. If your loan is a purchase, the settlement statement will also include a listing of any fees related to the transaction between you and the seller. These numbers will correspond to the items listed on the Good Faith Estimate.
  • Truth-in-Lending Statement - This document provides full written disclosure of the terms and conditions of a mortgage, including the annual percentage rate (APR) and other fees. It is the same as the Truth-in-Lending statement that you received immediately after your initial application, except it has been updated to reflect the final rate and fee information.
  • Note - This is the document you sign to agree to repay your mortgage. The Note provides you with the details of your loan, including the interest rate and length of time to repay the loan. It also explains the penalties that you may incur if you fall behind in making your payments.
  • Deed of Trust - This document secures the Note and gives us a legal claim against your house if you default on the Note’s terms. The deed of trust restates the basic information contained in the Note, as well as details your responsibilities as a borrower.

After the closing

After the meeting, your closing agent will officially record the mortgage and deed at the local government clerk’s office. This is the legal transfer of the property and it may take a few days after closing to be completed.

The closing agent usually will not give funds to those owed money from the sale until the transaction has been recorded. It is at the point of the deed being recorded that you become the official owner of the home.

If you have any questions or if we can help you in any way, please contact Member Services at (804) 323-6800 or (800) 285-6609.

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