Questions to Ask at Closing

At Federal Title, we have been helping buyers with their home purchases for over 25 years.  And over that time, we have been asked many questions.  Here is a suggestion of a few questions to ask at closing.

When is my first payment?

Maybe the most important item to know about your new loan is when is the first payment due.  It is typically due the first day after the next full month.  So, for example, if closing is on May 15, your first mortgage payment is likely July 1.

What is the total monthly payment?

Obviously, knowing the interest rate and whether or not it is fixed or adjustable is important.  But the lender supplied Closing Disclosure form makes this clear.  What is however more confusing is the exact monthly payment.  Unfortunately, the Closing Disclosure can be confusing since in some places it in includes condo or homeowners association dues and in some places it does not.

What is the escrow and how does that change?

The escrow account is an account established by the lender to collect and pay real property taxes and homeowner’s insurance.  Most loans include an escrow account – some require it.  The benefit of an escrow account is that it means you make one monthly payment and the lender handles your property taxes and homeowner’s insurance bills for you.  Sometimes homeowners prefer to pay their property taxes and homeowners insurance directly and not set up an escrow account.  If that is the case, you should reach out to your lender to see if that is possible.  However, most homeowners do opt for the escrow account.

How am I holding title to the property?

Obviously, if you are the sole owner, this is not an issue, though you should still ask to look at the deed to confirm the proper spelling of your name.  When you are buying jointly, you should confirm the tenancy on the deed, as well as the accuracy of your names.  For more information on tenancy, please take a look at our Guide to Tenancy.

What should I do with my closing documents?

Nowadays, we scan the closing documents and send them to the buyer via a secure email.  At Federal Title, we keep a copy of all closing documents, so if you ever misplace or lose anything, you can always reach out to us.  Once the deed is recorded, we send out a copy of the deed.  Since now most deeds are electronically recorded, we just send a pdf.  Gone are the days of receiving an original deed in the mail with stamps all over it.

If you have any questions about closing on a home, please contact one of our attorneys at attorneys@federaltitle.com.