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What to Expect When Closing on Your U.S. Mortgage

The last step in the U.S. mortgage lending process is the closing. This is when ownership of the home officially transfers from the seller to you. Most of the people involved with the purchase of your home will attend the loan closing including the buyer(s) and the seller(s) (and their attorneys if they have them) and real estate sales professionals.

The closing process can vary slightly depending upon whether you will be closing inside or outside of the U.S. Your RBC Bank cross-border mortgage specialist will guide you through the closing process including the documents you'll receive on this exciting day. Your role at the closing is to sign the documents indicating your agreement to the mortgage terms and conditions and to pay the closing costs.

If you will be signing the closing documents outside of the U.S.: Depending on the location of the property, certain U.S. states require you to sign the loan documents at a Consulate Office. In that situation, we coordinate with the title company to have the closing documents sent there. Otherwise we will work with you to arrange for a notary to assist by serving as a witness while you sign the documents in the closing package. If you have any questions during the signing of the documents, the notary will contact us or the title company to help answer them quickly.

If you will be signing the closing documents in the U.S.: Your RBC Bank mortgage closing specialist will reach out to the title company to coordinate the closing, which usually takes about an hour and is typically held at the real estate agent's office. The steps below explain what happens during and after the closing meeting. At the closing you will:

  • Review and sign the loan closing documents (see the documents noted below)
  • Provide a certified or cashier’s check in U.S. dollars to cover the closing costs and the balance of any funds due.
  • Provide the check from RBC Bank to the closing representative covering the mortgage amount
  • Review and sign the escrow account documents if RBC Bank will be paying your annual property taxes and homeowner’s insurance for you.

5 Important Mortgage Loan Closing Documents

You will receive a number of important documents at the closing meeting. They will include:

  • HUD-1 Settlement Sheet - The settlement sheet lists the services provided and the charges to the buyer and the seller. It is completed by your closing agent and must be signed by you and the seller. You will receive this form on the business day prior to your closing to ensure you know your closing costs in advance.
  • Truth-in-Lending (TIL) Statement - This statement outlines the estimated costs of your loan, including the annual percentage rate (APR) and other terms, including points, any other finance charges, the amount financed, the payment amount and the total payments required.
  • Loan Note - The mortgage (or promissory) note is a legal promise to pay RBC Bank according to the agreed terms of the loan. It includes the dates your mortgage payments are due and address to send your payment.
  • The Security Instrument - The security instrument is the legal document that secures the loan note and gives RBC Bank a legal claim against your house in the unlikely event you default on the note's terms.
  • The Deed - Only the seller signs the deed at closing. It is the document that transfers ownership from the seller to you. Once the deed is recorded with you listed as the new property owner, the official deed will be sent you.

After the closing, the mortgage and deed will be recorded for you at your local government clerk's office or registry of deeds. Once the deed is recorded you become the official owner of the home. Congratulations!

† All loans are subject to approval, including verification of acceptable income, creditworthiness, and property valuations. Minimum and maximum property values and maximum loan-to-value ratios apply. Homeowner’s insurance is required for all loans and flood insurance is required if property is located in a Special Flood Hazard Area.