Closing day: what to bring and what to expect

Before the day

The CFPB's closing checklist steps start days earlier:

• Get documents in advance. Your lender must send your Closing Disclosure at least three business days before closing, and you can ask for the rest of the documents early.
• Review carefully. The CFPB highlights the Closing Disclosure, the promissory note, the mortgage or deed of trust and the initial escrow disclosure. Compare closing costs with your Loan Estimate and ask about any fee you do not understand.
• Inspect the home. Check that it is acceptable and that agreed repairs were completed.
• Arrange utilities. You do not need to do this at closing, but the CFPB suggests contacting providers a few days ahead.

What to bring

Requirements vary, so ask your settlement agent a few days before. Common items include:

• Photo identification. Usually a current government-issued photo ID for each person signing.
• Cash to close. In the form the agent requires, usually a wire or a certified or cashier's check, for the amount on your final Closing Disclosure.
• Your Closing Disclosure and Loan Estimate, to compare as you sign.
• Proof of homeowners insurance, if the lender has not already received it.
• Any documents the lender or agent asked for, such as a final bank statement or a power of attorney.

Sending funds safely

Closing funds are a target for fraud. The CFPB describes scammers who compromise email accounts and send buyers fake wiring instructions that appear to come from their agent or settlement company. Its advice:

1. Choose two trusted contacts, such as your agent and settlement agent, and confirm the closing and payment process with them in person or by phone.
2. Never follow wiring instructions in an email.
3. Verify the account name and number using a phone number you already agreed on, not one from an email.
4. If something goes wrong, contact your bank immediately to ask for a wire recall and file a complaint with the FBI's Internet Crime Complaint Center.

At the table

Expect to sign many pages. The CFPB recommends reviewing documents for accuracy and asking any questions you have. It also says you do not have to sign anything unless you are satisfied with the terms, and that errors can sometimes be corrected at closing. If something is seriously wrong, review your contract and get advice, since walking away can affect your deposit.

After you sign

The CFPB's checklist continues after closing:

• Find out when your first payment is due and how you will pay it.
• File changes of address with banks, card issuers, loan servicers, insurers and the DMV.
• Set aside money for repairs, and if taxes and insurance are not escrowed, save for those bills.
• Keep your closing documents in a safe place.

Who you may meet

Depending on your state, the closing may be run by a settlement agent, an escrow officer, a title company representative or an attorney. Your real estate agent and loan officer may attend, and in some places buyer and seller sign separately. If you are signing with a co-borrower, both of you usually need to be present or have arranged a remote or power-of-attorney signing in advance with the lender's approval. Ask the settlement agent who will be there, how long the appointment usually takes and whether you can review a copy of the documents ahead of time.

The bottom line

Arrive with ID, funds sent through a verified route and documents you have already reviewed. Confirm requirements with your settlement agent, verify wiring instructions by phone and ask questions before you sign.