Preparing for Closing Day

How prepared are you for closing day? Are all your mortgage documents in order and ready to be signed? Do you have the final distribution of funds lined up to transfer to the seller? Who else needs to be there to help facilitate the transfer of ownership and purchase of your new home? Did you do a walk through to inspect the property and ensure it’s in the same condition as what’s specified in the contract?

Your Closing Team:

While closing practices may vary, you will work with a number of parties throughout the closing process, which may include:

• real estate agents for you and the seller
• your lawyer/notary or closing agent
• the seller’s lawyer/notary
• a lender’s representative or your title insurance company

At Closing:

At closing you’ll need to review and sign some legal/financial documents, for example:

• The agreement between you and the seller transferring ownership of the property
• The agreement between you and your lender regarding the terms and conditions of the mortgage

And you’ll need to pay your closing costs (the numerous fees associated with obtaining a mortgage and transferring property ownership). Usually these are either rolled into the principal balance of your new mortgage or some buyers may pay these out of pocket.

Document signing and delivery of funds

The final document review and signing will usually take place at your lawyer’s or notary’s office, sometimes a few days before close.

On closing day, your lawyer/notary or closing agent will handle the following remaining tasks:

• arranging for delivery of closing funds to the seller’s lawyer
• registering the transfer and mortgage
• releasing keys to you for your new property

Other important information

• Bring a cashier’s check or proof of wire transfer for the amount of your closing balance (the buyer’s statement of adjustments). Also bring two forms of ID and proof of property insurance.
• Review all documents thoroughly and make sure your personal information is correct on all forms.
• Make sure you understand all the fees, type of loan, rate, payment amount and schedule—are they what you were expecting? If not, now’s the time to confirm.
• Ask questions—it’s your right to fully understand any document before you sign it.
• Walk away from a deal if you are not comfortable with it.

Once you’ve reviewed and signed all of your closing documents and you receive your house keys, you are a new home owner!

This article offers general information and should not be regarded as a complete analysis of the subject matter discussed. It is not intended as legal, financial or other professional advice. Consult a professional advisor regarding your specific situation.

Personal lending products and residential mortgages are offered by Royal Bank of Canada and are subject to its standard lending criteria. Some conditions apply.