Closing Process

The closing process marks the final step in your journey to homeownership. During this critical appointment, legal ownership of the property transitions from the seller to you, solidifying your status as the property's rightful owner.

At First Interstate Bank, we streamline this process for your convenience. Typically held at a title company, the closing involves a dedicated closing agent who manages the paperwork and coordinates the necessary signatures to facilitate the property transfer. Following the closing, the closing agent ensures that the transfer is officially recorded with the county where the property is located.

Estimating Closing Costs

Most real estate transactions involve closing costs, which are outlined for you by your mortgage lender in the Loan Estimate Disclosure. These costs may encompass credit report fees, origination fees, discount points, appraisal fees, title search fees, recording fees, and other disclosed expenses. The actual closing costs for your specific transaction will be detailed on the settlement statement at the time of closing. For precise information about closing costs associated with your loan, please consult with your mortgage lender.

Title Insurance

Title insurance is a mandatory component of your loan agreement. It ensures that the property you're purchasing possesses a clear title, free from any liens or claims that could obstruct the property's transfer to you as the owner. Typically, title insurance companies offer two types of policies: the Owner's Policy, which covers you as the homeowner, and the Lender's Policy, which safeguards the bank's interests.

The title company conducts thorough research to confirm the title's clarity for transfer to your name. If any title issues arise (such as competing claims on the property), they are typically resolved before the closing. Once you are covered under a title policy, it offers protection against any claims made against the property, including associated legal fees. This protection remains active as long as you or your heirs own the home.

Mortgage Insurance

Mortgage insurance becomes a requirement when a borrower purchases a home with a down payment of less than 20%. This insurance serves to protect the bank, allowing them to offer loans with lower down payment requirements. The cost of your mortgage insurance depends on various factors, including your loan-to-value ratio, and is typically incorporated into your monthly mortgage payment. Your mortgage lender will provide detailed information on the amount charged for mortgage insurance and when you may become eligible to cancel it.

At First Interstate Bank, we're committed to guiding you through the closing process, ensuring a smooth transition into homeownership while addressing your financial needs with clarity and transparency.