Closing on your first home is both scary and exciting at the same time.  Scary because you now have a very large debt, the mortgage, tied to your name, but exciting because for you have a place in North Colorado Springs you can call home that belongs to long as you continue to make the payments.

The day or two before closing we should receive estimated closing documents from your lender.  This will outline all the loan costs, pro-rated costs with the seller, and anything else that is required by law to be documented prior to closing.  We will both review this document closely to make sure that everything is accurately reflected from the contract and subsequent amendments to include the closing costs.

It is important for buyers to understand that even though we ask for the seller to pay closing costs up to $3000, there are certain costs that the seller cannot legally pay.  So occasionally, a portion of the $3000 is returned to the seller. This is not your money, it is the seller's.  If your lender cannot apply the full $3000, then the difference is returned to the seller.

Any issues with the HUD are identified to the lender and the closing agent.  Once we have a final HUD, we are cleared to close.  You will need to bring a certified check to closing for the amount at the bottom of the HUD identified as "Cash From Buyer."

Typically, at the closing we will meet the sellers and their listing agent for the first time.  I prefer to meet at the title company because the closer frequently has to verify information at her desk, but occasionally the listing agent will insist on closing in their office.

In addition to the seller, their agent, and us, the closing agent with the title company and hopefully your lender will also be present.  Again this is why you want a local lender---you want them at the closing table to fix any issues.

The closing agent will want a picture ID with your signature.  She will make a copy of the ID and have you sign their notary book.  Then the fun begins.

The closer will verify the sales price of the home and the financials by reviewing the HUD for each party.  At this time, you will hand over the check for the "cash from buyer."  Be prepared to get writers cramp at the closing table.  For many documents, such as the HUD, you will be required to sign multiple copies, so all parties receive an original copy.  In addition to this, you will be signing all your loan documents.  The number of documents varies with each lender, but you can expect to sign your name 25 - 40 times during the closing.  The closing agent will explain each document in as much detail as you need, so you are comfortable with what you are signing.

Once everything is signed, the closer will excuse herself to make copies of documents and to verify that the lender has wired the money for your loan.  Typically while the closing agent is out of the office, the seller will turn over all keys, garage door openers, and documents specific to the property.  It is amazing how relaxed everyone is at this point, it can turn into a party.  This is when you are free to ask about anything with the property or the neighborhood.

Once the closer has confirmed that they have received the wire from your lender, she will return with the documents for each party and checks for the seller and the real estate agents.

At this point, everyone is free to go and you are free to start moving in!