Closing, sometimes known as settlement, is when you sign the documents to buy your new home. Remember the amount of paperwork you had to sign to buy a new car? Multiply that by a factor just under infinity and that gives you an idea of how much paperwork you’ll face.

Some settlement agents have adopted paperless closings, but the industry has been slow to change. More than likely, a printer will be spitting out a pile of warm paper on your behalf.

THE 30-YEAR DECISION

It’s likely that you don’t plan to stay in your home for 30 years, but the fact is, if you take out a traditional loan, you’re committing to a 30-year debt. Take a moment to consider the interest you’ll pay just in the first five years. That’s when it will hit you: This really is a big deal, so much so that you might not want to go it alone. If you don’t have an attorney with you at closing, technically there will be no one there looking after your legal interests. The closing attorney represents the seller or the lender, but not you.

THE HOME STRETCH

From start to finish, here’s a closing period checklist. (All told, the time from signed contract to loan closing typically spans 30-60 days.)

• Take the signed sales contract to your lender and begin the finalization of your loan. And consider whether you want to lock in your interest rate.
• Order a home inspection (and perhaps a radon and termite inspection). Try to schedule time to tag along at the inspection.
• Confirm that your lender has ordered an appraisal.
• Follow up on matters uncovered by the home inspection.
• Track contingency deadlines.
• Contact your insurance agent to establish a homeowners policy (to go into effect the day of closing).
• Schedule utility transfers and complete a change of address. Attend to other moving details.
• Has the closing date been set yet? Make sure you know where the closing will be held — and how to get there!
• Review the HUD-1 settlement statement before the closing and compare it to the Good Faith Estimate. If there’s a discrepancy, talk to your lender right away.
• Know how much you’ll owe at closing — and how you’ll be paying (cashier’s check, certified check, wire transfer, etc.).
• Close out contingencies.
• Confirm with the lender that the loan process is on track for the scheduled closing date.
• A day or so before closing, conduct a walk-through of the home to be sure it’s in proper condition. (If there’s a problem, your agent will need to contact the seller immediately to discuss possible remedies or adjustments at closing.)
• Determine whether any additional information or documentation will be required at closing.
• Bring a photo ID and closing funds.
• Sign a mountain of paperwork.
• Get the keys!

WHAT’S THE DEAL WITH A HOME WARRANTY?

As a part of the closing process, you might be offered the option of purchasing a home warranty. A typical price for a basic warranty can be around $500 per year, according to Realty Times. As with any other service contract offered with a major purchase, it has its pros and cons.

• The good: You’re likely to receive discounted (but not free!) service calls as well as repair and replacement of appliances and major systems such as electrical, plumbing, air conditioning and your furnace. Having a home warranty can provide some extra peace of mind, especially if you’ve purchased a distressed property.
• The not-so-good: There’s always fine print. Be sure to read the exclusions and limitations. You probably won’t be able to choose your service provider, and some implied services might require additional fees.

PREPARE FOR THE UNEXPECTED

Gathering around a table with stacks of documents to sign can be intimidating. Have a cup of coffee, chat a few moments and settle in. Take as much time as you need to read everything closely. This is your closing. There’s no hurry.

There might be last-minute glitches. A fee here or there may vary from the original estimate, but you deserve a full explanation for any changes. And your interest rate could change, unless you paid for a rate lock. (Do you have it in writing?) Most of the time, things go smoothly, but if it things spiral out of control, remain calm. You can’t be forced to close the deal if you’re suddenly uncomfortable with the process.

If you decide to walk away, ask how much money it will cost you. Almost certainly, you’ll lose the earnest money in escrow — and there can be additional damages for a contract default. It’s not a decision to take lightly.

Now that we’ve had that little moment of drama, relax. Expect things to go well. Just one more step and you’re home free.