What to expect on closing day

Closing on a home can be likened to a graduation. While there’s no public ceremony, scheduling the signing is a plain indication that you have completed the sometimes lengthy and cumbersome process of being approved for a loan. In addition, as a buyer of new construction, you may have also selected your lot, survived the construction process, and made it through the selection of appliances and finishes.

Closing day represents the last step in the buying process. Ideally, your loan rep will have given you a general outline of how the meeting will go.

“Your loan agent ... should have prepared you … to make sure that you … know what to expect,” says Christiana

Tran, mortgage planning consultant at Pacific Western Mortgage Group in Emeryville.

Doing your part to keep the day as stress-free as possible is also good practice.

“It’s a major, major life change, so try to ease your stress as much as possible by not focusing on anything else,” Tran counsels.

It can be a good idea to clear your mind, as well as your schedule. For the days just before

and after closing, advises Tran, “Don’t make major plans because things will come up that you will never foresee, never consider, never even think could be possible . ... So if you start scheduling moving vans, if you start scheduling days off, if you have to move on a certain day, then it’s inevitable that” the stress will become overwhelming.

Even though you’re thrilled to be at the finish line, maintain an attitude of caution and deliberation.

Once in the room, it’s critical to take the time

to pore over every document before you sign it.

“I make everyone sit down and read,” declares Tran.

Although repeat customers may be inclined to defer to her judgment as a sign of trust, she insists that they peruse all the papers.

Asking questions is not only expected, it’s necessary, especially for first-timers.

“Don’t sign anything until you understand it,” warns Tran. “The loan officer is there to explain everything.”

And while buying experience can boost your

confidence, it should not lead to arrogance as regards making line-byline edits to the papers. Closing documents are standard for a reason.

“Remember that you can’t change anything,” notes Tran.

Californians are privileged as compared with buyers in other parts of the country. The steps between closing day and the actual recording of the deed take a couple of days at least. That means you have an opportunity to change your mind.

“In California, you sign them, they get sent back to the lender, they

get reviewed,” explains Tran. “There’s a couple of days’ lag, and then the loan funds. Once the loan funds to escrow, (there’s a) wait of 24 hours before they record (the title.) So in that time you have at least 24 to 48 hours to review anything again, just in case.”

If you do have second thoughts, Tran says you can rest easy.

“You can expect the escrow officers to do what will make you comfortable,” she notes. That means you have the option of notifying them, “Don’t record this until I call you at 9:00 in the

morning and say ‘I’m good with it.’ ”

The flexibility the California process allows cannot be stressed enough.

“Just because you sign on the dotted line doesn’t mean it’s done,” emphasizes Tran. “It’s only done when the title has been transferred into your name. Once it’s recorded at the county, there’s no going back.”

Making it to closing day is reason enough to celebrate. Minimizing stress by scheduling wisely and understanding the process can promote peace of mind.