What to Expect at Closing: A Guide for Home Buyers in Colorado Springs, CO

What to Expect at Closing: A Guide for Home Buyers in Colorado Springs, CO

When you're buying a home in Colorado Springs, CO, understanding the closing process is essential. Here’s a detailed look at what you can expect and who will be there to help you through this important step.

Key Documents You’ll Sign at Closing

1. Deed of Trust: This document places a lien on your property as collateral for your loan. It allows the lender to pursue foreclosure if you default.
2. Promissory Note: A legal agreement where you promise to pay the lender. It includes the loan amount, interest rates, penalties, and payment schedule.
3. Closing Disclosure: An itemized list of your final credits and charges, detailing the loan terms, interest rate, and closing costs.

Verification Process

A Title Representative will need to verify your identity. Make sure to bring a government-issued photo ID, such as a driver’s license or passport. Some loans may require two forms of ID, so it’s good to have a backup just in case.

Who Will Be There

The closing process involves several key individuals:

• Title Company Representative: Ensures all documents are signed, recorded, and funds are properly distributed.
• Home Seller and Their Agent: May also be present.
• Your Agent: To guide you through the process and answer any questions.
• Lender: To confirm the loan details and handle the financial aspects.

Understanding the Deed of Trust

In Colorado, a Deed of Trust is often used to secure property debt. It includes a power of sale clause, allowing the lender to initiate foreclosure if necessary. This document protects the lender by securing the debt against your property.

The Promissory Note

This document is your commitment to repay the loan and outlines key terms such as interest rates, default rates, penalties, and the repayment schedule. It is secured by the Deed of Trust, making it a crucial part of the closing process.

The Closing Disclosure

The Closing Disclosure is a comprehensive five-page form that details your mortgage loan’s critical aspects, including the purchase price, loan fees, interest rate, and estimated real estate taxes and insurance. It provides a clear picture of your financial obligations and closing costs.

Handling Funds at Closing

Your “Cash to Close” can be paid via wired funds from your bank to the Title Company or by obtaining a cashier’s check. The amount should match what is titled "Due from Borrower" on the Settlement Sheet. If wiring funds, contact the title company at least two days before closing for instructions. Follow these instructions carefully and bring a checkbook for any last-minute changes.

Closing on your new home is a significant milestone. By understanding the documents you'll sign, the verification process, and the roles of those involved, you can approach closing with confidence. If you have any questions or need further assistance, feel free to reach out to your real estate agent.

Nicole Strom from The Platinum Group Realtors is here to ensure your closing process is smooth and stress-free. Happy home buying!

Have any questions on the home purchase process? I am here to help. 719-922-0102