Closing Day with DPA: What to Expect

You've made it. After weeks of paperwork, waiting, and probably a few moments of stress, closing day is here. But if you're using down payment assistance, you might be wondering: is closing different when DPA is involved?

The short answer is no, not really. But there are a few things worth knowing so you can walk in confident and prepared.

The Day Before Closing

The work for a smooth closing day starts before you even show up:

Final Walk-Through

You'll typically do a final walk-through of the property within 24 hours of closing. This is your chance to:

• Verify any agreed-upon repairs were completed
• Make sure the property is in the same condition as when you made your offer
• Confirm all appliances and fixtures that were supposed to stay are still there
• Check that the sellers have moved out

Get Your Funds Ready

Your lender will tell you exactly how much to bring to closing. With DPA, this amount is often significantly less than buyers expect, since the down payment assistance is already handled.

Important: You'll typically need to wire funds or bring a cashier's check. Personal checks usually aren't accepted for closing. Confirm the exact requirements and amounts with your title company.

Review Your Closing Disclosure

You should have received your Closing Disclosure (CD) at least three business days before closing. Read it carefully. This document shows:

• Your final loan amount
• Your interest rate
• Your monthly payment breakdown
• All closing costs
• The DPA assistance applied to your transaction

If anything looks wrong, flag it immediately. Don't wait until you're sitting at the closing table.

What to Bring to Closing

Here's your closing day checklist:

• Valid government-issued photo ID (driver's license or passport)
• Cashier's check for your closing costs (if not wiring funds)
• Proof of wire transfer if you wired funds
• Proof of homeowners insurance (your lender should have this, but bring a copy)
• Your closing disclosure for reference
• A pen (they'll have one, but some people like their own)

Your lender or title company will confirm exactly what you need a day or two before closing.

At the Closing Table

Closing typically takes 30-60 minutes for most purchases. Here's what happens:

The Players

Depending on your location and situation, you might have:

• A closing agent or escrow officer from the title company
• Possibly your real estate agent
• Sometimes the seller (though often they sign separately)
• You and anyone else on the loan

Your lender usually doesn't attend in person, but they've sent all the documents ahead.

The Documents

You'll sign a lot of papers. The main ones include:

• Promissory note: Your promise to repay the loan
• Deed of trust (or mortgage): The security instrument that ties the loan to the property
• Closing Disclosure: Final version showing all costs and terms
• DPA second lien documents: Paperwork specific to your down payment assistance

The closing agent will explain each document. Don't be afraid to ask questions. This is your home purchase, and you have every right to understand what you're signing.

The DPA Documents

Because you're using down payment assistance, you'll have additional documents:

• Second deed of trust: The DPA is technically a second lien on your property
• DPA rider or agreement: Terms specific to your assistance program
• Forgiveness provisions: Documents explaining when and how the assistance becomes a grant

For Pima Tucson Lighthouse or Home Plus Arizona, these documents spell out that if you stay in the home as your primary residence for the forgiveness period (3-5 years depending on the program), you don't have to repay the assistance.

How DPA Shows on Your Closing Disclosure

On your Closing Disclosure, look for:

• Line showing DPA credit: Your assistance will appear as a credit reducing what you owe
• Second lien disclosure: It will show you have a second mortgage (the DPA lien)
• No monthly payment for DPA: You'll see your main mortgage payment but no separate payment for the DPA

After You Sign

Recording

Once everyone signs, the title company sends the documents to the county recorder's office. The deed gets recorded in your name, and you officially own the home.

Getting the Keys

In most cases, you get the keys as soon as recording is confirmed. Sometimes you get them at the closing table pending recording; other times you pick them up from your real estate agent later that day.

What Happens to the DPA

Your DPA just sits there quietly. You don't make payments on it. You don't really think about it. As long as you:

• Live in the home as your primary residence
• Don't sell, refinance (in some cases), or transfer the property
• Stay for the full forgiveness period

The assistance simply converts to a grant at the end of the forgiveness period. It's essentially forgiven, and you owe nothing.

Common Closing Day Hiccups

Most closings go smoothly, but occasionally issues pop up:

• Wire delays: If you wired funds, they might not show up immediately. Wire early.
• Document errors: Typos in your name or address can delay things.
• Last-minute conditions: Rarely, a lender might need one more document. This is why you stay in touch with your loan officer right up to closing.

Celebrate (Responsibly)

Once you've signed the last page and have keys in hand, you're a homeowner. The DPA helped get you there, and now it's time to move in and make the place yours.

Just remember: don't go on a furniture-buying spree on credit right before your first payment is due. Old habits die hard, but you made it this far by being financially responsible.

Questions Before Your Closing?

If you're approaching closing and have questions about what to expect, give us a call at (480) 420-4918. We're happy to walk you through the process.

For more information about Tucson DPA programs, visit our programs page.

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Closing procedures may vary based on your title company, lender, and specific circumstances. This is general guidance for educational purposes.