Congratulations. Your mortgage loan has been approved and you have received a commitment from your lender. Now, only the closing remains before you can call the house your own.

Remember, even though you have signed purchase agreement, you have no rights to the property, including access, until the legal title to the property is transferred to you and loan is closed.

The closing procedure is fairly complex and work remains for you to prepare for the closing. Your preparation will help assure a smooth closing. At closing, you will sign the mortgage loan documents, the seller will execute the deed to the property, funds will be collected and disbursed and the closing agent will record the necessary instruments to give you legal ownership of the property.

Settlement of a mortgage loan is a legal process, so specific procedures and requirements will vary according to local laws, but the following outline of closing practices will help you through the process.

Between Commitment and Closing

As soon as you receive a firm approval from your lender to confirm the actual date of loan closing. An estimated closing date was probably specified in the purchase contract, but a firm date needs to be set by you, the seller of the property and lender.

You want to make sure that settlement will take place before the real estate contract expires, before your loan commitment expires and before any rate lock agreement (guaranteed terms of the loan) expires. While you may be able to extend your real estate contract, rate locks are more difficult, especially in a rising interest rate environment. » Read more: Mortgage Loan Closing