You’ve finally reached the end of the home buying process and received your final Closing Disclosure from your lender. This detailed document outlines all the final costs associated with your mortgage loan and purchase of the home. Now that this major milestone is complete, you may be wondering – what comes next?
The final closing disclosure is an important part of the paperwork, but it doesn’t necessarily mean you’re completely done with the home buying process. Here’s an overview of what typically happens after you receive this final disclosure:
What comes after the final closing disclosure?
After the final closing disclosure, the next step is closing day. On this important day, you’ll sign paperwork and receive the keys to your new home. Following the closing, there are a few steps that need to be completed like recording the deed, updating utilities and your address, and moving in. Your first mortgage payment will be due on the first day after a full month following closing.
Ongoing responsibilities include maintaining your property and abiding by homeowner’s association rules, if your property is governed by an HOA (ie. condominium).
1. Closing Day
The first thing that will happen after your final Closing Disclosure is the closing! This is when you’ll sign the remaining paperwork and get the keys to your new home. On closing day, you’ll sit down with your lawyer and a representative of the title company. You’ll sign your loan documents and other closing documents. You will need to make sure that any remaining down payment funds are sent to the title company in time.
During closing, the title company will disburse the funds from your lender to the seller. They’ll also record the deed and mortgage or deed of trust with the county. Once everything is signed and payments are made, you’ll get the keys to your new property! Be sure to do a final walk through before closing to make sure everything is in the agreed upon condition.
2. Post Closing Tasks
After the excitement of closing day, there are still a few post-closing tasks you’ll need to take care of:
- Request a copy of your deed. Even though the title company records the deed during closing, you’ll want to get a copy for your records.
- Final utilities changeover. Contact all utility companies to transfer service to your name. Don’t forget water, gas, electric, internet, cable, etc.
- Change your address. Update your driver’s license, passport, car registration, and any accounts with your new address.
- Home insurance. Your lender will require you to have adequate home insurance from day 1 of owning your home. Make sure your policy is in place.
- Schedule maintenance and changes. Things like pest control, yard care, and any home upgrades or renovations may need to be arranged.
- Move in!!
3. The First Mortgage Payment
Your first mortgage payment will be due the first day after a full month following your closing date. If you closed mid-month, the interest for the remainder of that month will be collected at closing. In other words, if you closed mid-month your first actual payment will be due on the first day of the second month following your closing date.
Pay close attention to your loan servicer’s instructions so you don’t miss this important first payment. Going forward, be sure to budget for your new monthly housing payment.
4. Post-Closing Obligations
Aside from maintenance and mortgage payments, there are a few other things to keep in mind after closing:
- Escrow account for taxes and insurance. Your lender will likley require money to be set aside in escrow to pay your property taxes and home insurance when they are due. Your monthly payment will include an escrow amount.
- Servicing your loan. Your lender will transfer servicing of your mortgage to a servicer, if they don’t service it themselves. The servicer handles collecting payments, addressing account issues, etc. Look out for mail related to the change in services to ensure that your payments are sent to the right place.
- Homeowner responsibilities. Things like yard upkeep, HOA rules, and general maintenance are now your duty as part of homeownership. Be a responsible community member.
Enjoy Your New Home!
Closing on your new home is an exciting milestone, but the journey isn’t completely over once you get the keys. Make sure you stay on top of follow-up tasks and get ready for the responsibilities of homeownership.
With your new property taken care of, you can start enjoying your new living space and making it your own. Congratulations on achieving the dream of homeownership!