This simple, five-step walk-through to loan closing will help you understand the procedure and give you an idea of what to expect.


As your lender, I will find a professional appraiser to determine the value of the home you want to purchase. The appraisal will provide an estimate of the home’s value by comparing it to others that have recently sold in the area. Lenders generally require an appraisal to ensure that the property backing the loan will cover the loan amount in case of default.

2. Home Inspection

A professional home inspection is recommended for every homebuyer. In some cases, a home inspection may be required as part of your home financing approval process. At minimum, the inspection should cover all the home’s major systems and structural elements, including the foundation, electrical system, heating and cooling systems, insulation, roofing, plumbing, and all exterior features.

3.Title Insurance

There are two types of title insurance: one protects the lender and one protects the borrower from claims against your ownership of the property.

Such claims may be made by: undisclosed spouses, heirs of previous owners, creditors holding liens against previous owners, or other parties. Most lenders will likely require you to purchase a title policy, which will cover their interest in the property.

It’s up to you if you would like to purchase a policy to protect your interest in the home. Both your Realtor and I will be able to recommend a title insurance company who can provide you with additional information about the policies available in your area.

4. Homeowners Insurance

Did you know that most mortgage lenders, at closing, require proof that you’ve purchased homeowners insurance?

In the event of a loss such as a fire, tornado, or burglary, homeowners insurance can pay for damages to the home, as well as for costs to repair or replace contents. If the home is damaged and becomes uninhabitable, homeowners insurance can cover additional living expenses for a period of time while your home is being repaired. Homeowners insurance can also protect you from loss if someone is injured or their personal belongings are damaged while on your property.

5. Closing

At your closing, you’ll go through all the final steps of securing your new loan. The most important thing to know is that all closing costs must be paid in full at this time. By working closely with the closing attorney, I will find out exactly how much you’ll have to pay at closing and make sure no last second surprises affect your closing.

Previous posts in this series:


For assistance with your mortgage needs, please call Tony Gallegos.

Tony Gallegos
The Georgia Mortgage Cicerone
(404) 519-4399 (cell) (email)
To learn more about Tony Gallegos <Click Here>


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