When the bank has approved your mortgage, the next step is the closing.
Well before this final step, the approval of the loan itself required the bank to check your financial status, your credit history and you would have already confirmed with your mortgage broker about the interest rates and the monthly mortgage payments.
Sometimes the process of approving the loan can take anywhere between 4 to 8 weeks, depending on how aggressive your mortgage broker is and how accommodating the bank is.
At the time of closing, either you need to meet the person closing the loan in the bank or some place, or the bank person can come to your home at the time of your convenience as they normally are okay with meetings till late in the evenings.
The whole mortgage closing meeting may last from about 45 minutes to an hour and a half depending on how many questions you have for the papers you are asked to sign. Normally the person closing the loan will explain each the purpose of each paper you are asked to put your signature on. If you have any questions you cancer them answered. However, if you are not happy with what is printed on the paper you are required to sign on, any changes to that at the time of closing may not be possible and the closing may need to be canceled to address your concerns. If the bank and you do not come to a mutual agreement, the bank would cancel the entire mortgage approval and you might need to restart the whole process again. Therefore it is good to know in advance all about the mortgage and have your broker explain to you what you would be required to sign for closing the mortgage. Being prepared in advance can save you a lot of anxiety at the time of closing.
Obviously, all the parties whose name is on the mortgage need to be present to sign the required papers for closing the mortgage.
If you have agreed upon some down payment or points, you would be required to make that payment at the time of closing.
Once the closing process is complete, the bank would send the payment to the builder or the home owner if you are buying a home. If you are refinancing your mortgage, the new bank would send the payment to your the bank you had your last mortgage with.
