A Trusted Guide to Help You Every Step of the Way

Your loan officer is your mortgage expert. He or she will let you know what to expect when it comes to extending an offer, all the way through closing.

Making an Offer

Since buying a home is such a large investment, it will involve serious negotiations. You’ll want to work with a real estate professional as you determine the appropriate initial offer to extend. Other considerations to keep in mind:

  • Include your prequalification* letter, it can give you extra buying power or leverage. Sellers generally prefer a qualified offer.
  • Get all negotiations in writing so you will have a clear record of decisions and dealings. This can help you avoid confusion and misunderstanding through the process.
  • Have earnest or “good faith” money available for a deposit. While the amount will vary depending on the property, earnest money will be safely placed into an escrow account until closing

Pre-Closing

Once your offer has been accepted, you’re very close to owning a new home. Here’s what you’ll need to do now:

  • Review the loan terms with your Mutual of Omaha Mortgage loan officer and be sure you understand all requirements and details
  • Purchase homeowner’s insurance and, if needed, flood insurance for some locations
  • Work with your loan officer to set a closing date
  • Verify that a property survey was ordered with the closing agent or attorney
  • Make a moving checklist of necessary tasks and timelines
  • Complete a final inspection of the home you are buying
  • Review and confirm you have met the guidelines and conditions in the purchase agreement detailed below
  • Bring a certified or cashier’s check for the total amount you owe in closing costs to your closing. Keep in mind, personal checks and/or cash are not accepted

Purchase Agreement

You’re in the home stretch! To complete the purchase, you will need to finalize the purchase agreement. This can include:

  • Property address and legal description
  • The sale price, plus the loan, down payment and deposit amounts
  • Legal names of the buyer, seller, buyer’s agent, seller’s agent, mortgage broker/banker and any attorneys
  • Applicable deadlines for the transaction
  • Any contingencies, such as the sale of the buyer’s current home, or necessary repairs identified in the home inspection, that need to be addressed before finalizing the agreement

Closing Your Home Loan

Closing day is exciting because it’s the day you get the keys to your new home. It can also be a stressful time since there are a lot of details to handle. But remember, your Mutual of Omaha Mortgage loan officer is there to answer your questions and help guide you through the process. Here’s a summary of what you can expect in closing.

Closing Costs

As a general rule, you can expect closing costs to average from two to seven percent of the home’s purchase price, and includes three basic categories:

  • Prepaid Expenses
    Prepaid expenses you can expect to pay at closing include homeowner’s insurance, association dues, mortgage insurance premiums and the cost to set up an escrow account. When the lender pays the annual insurance premiums and various taxes on the borrower’s behalf, it’s called an escrow account.

  • Discount Points
    Discount points are a one-time, upfront mortgage closing cost which give a borrower access to “discounted” mortgage rates as compared to the market. The IRS considers discount points to be prepaid mortgage interest, so discount points can be tax-deductible. In general, one discount point paid at closing will lower your mortgage rate by 25 basis points (0.25 percent).

  • Out-of-Pocket Expenses
    Typical out-of-pocket expenses you may incur which will be due at closing include fees for appraisals, home inspections, credit reports, deed recording, attorneys, tax services and other miscellaneous expenses.

Closing Day

Closing day can be a blur whether you are purchasing or refinancing a home. You can expect to have lots of documents to review and sign as part of the process. However, rest easy knowing your Mutual of Omaha Mortgage loan officer will make sure you see everything ahead of time. That way you can feel as prepared and confident for your closing as possible.

Who Comes to Your Closing

Who attends your closing will vary based on several factors, such as the state, property type and more. Some of the support people who might attend your closing include:

  • Your attorney
  • The seller(s) and seller’s attorney
  • Both real estate professionals (buyer’s and seller’s agents)
  • The builder’s representative (if a brand-new home)
  • The closing agent (from the title company or a real estate attorney)
  • A notary public

Closing Process

Whether your closing will be held at the title company, real estate attorney’s office, or another agreed upon location, you can expect the following at closing:

  • Review and sign all loan documents. Take the time to have every document explained to you clearly before signing. If something is different than what you agreed to, resolve the issue before signing.
  • Provide a certified, wired or cashier’s check. You will need to make a payment to cover your down payment, closing costs, prepaid interest, taxes and insurance at the time of closing.
  • Lender distributes your funds to the closing agent. Depending on your loan terms, you may need to set up an escrow account so your lender can collect property taxes and homeowners insurance along with your monthly mortgage payment.

Your Closing Paperwork

There are three primary documents to review and/or sign during closing:

  • Closing Disclosure Form
    An itemized list of the final credits and charges for both you and the seller, based on the terms of the contract. You will receive the closing disclosure form at least three days prior to the closing for your review.

  • Deed of Trust or Mortgage
    These documents are the agreement you sign to place a lien on your property as security for repayment of your home loan.

  • Mortgage Promissory Note
    The mortgage promissory note is your promise to pay the lender according to the agreed upon terms, including where and when your mortgage payments are due.

What You’ll Need at Closing

  • A cashier’s check made out to the title company to cover closing costs. Remember, cash, personal checks or credit cards won’t be accepted.
  • Government-issued identification card with photo for the notary.

If you have any questions, your Mutual of Omaha Mortgage loan officer is always available to provide support at any point from application through closing.

*A prequalification is not an approval of credit, and does not signify that underwriting requirements have been met.

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