Many homeowners will tell you that the day they went through “closing” on their new home was probably the most stressful, confusing, and even frustrating experience of the entire home buying process.

But it doesn’t have to be that way if you’ve done your homework on buying a home. Because if you understand the terms, the procedures, and the reasons behind the closing process, you’ll know how to be fully prepared. And things are likely to go much smoother and more predictably.

The first thing to expect is the unexpected delay. Be patient and don’t freak out, panic or worry that the deal is falling apart. If you have all the necessary paperwork, everything will be fine. And bring your checkbook to closing as there will be fees to pay. Some fees may require a cashier’s check, so ask the people at the title company about this well in advance. You will want to have time to take care of this at your bank. It will be the seller’s responsibility to provide the deed, any recent property tax bills, and other relevant closing documents.

Second thing to expect? Lots of unfamiliar legal and financial terms. But don’t let them make you feel uncomfortable or intimidated. Here are simple explanations of what you’ll probably need to sign off on at closing:

The promissory note is the document that requires the buyer to repay the loan. It specifies the amount of the loan, the monthly payment, the interest rate, when the payment is due, and when it is legally delinquent.

The Settlement Statement details things like the purchase price, the amount of the loan, the cost of the transaction, and which party pays each fee. Buyer and seller must each obtain their own copy in advance. That’s so each party has enough time to review and address any concerns. This will save time at closing.

The deed of trust gives the lender the right to the property in the event of non-payment.

The warranty deed is signed by the seller. Establishes that the seller has transferred the deed to the buyer.

A rider to the deed of trust details whether the home is in a homeowners association or a multi-family dwelling.

Planned Unit Development (PUD) is another term for a homeowners association. A homeowners association can also place a lien against the homeowner, but it is secondary to the lender’s lien.

Clause Two to Four describes the house in more detail if it is for two to four families. Anything over four units is considered commercial.

Property Inspection is required by the lender. The seller provides it. The survey determines property boundaries, easements, encroachments, right-of-way, and improvements. If there is any encroachment, the lender will stop the transaction. The lender usually requires that the situation be fixed or resolved; One way to do this could be through additional title insurance coverage.

Form 4506/8821 is usually the normal purchaser recognized authorization form. The lender may request a copy of the buyer’s tax returns for auditing or quality control purposes.

A flood determination informs the buyer if the property is located within a floodplain. Floodplain information is part of the property survey. FEMA (Federal Emergency Management Administration) is the source of the flood maps. If the property is within the floodplain, the buyer will be required to purchase flood insurance as a condition of closing.

Hazard insurance coverage protects property in the event of a catastrophe involving fire or other calamities. A standard policy covers the value of the home and/or the amount of the loan.

The Sales Agreement or Purchase Contract states that the seller agrees to sell and the buyer agrees to buy the property under certain terms.

The buyer offers Earnest Money to take the house off the market until the details of the transaction are completed. Sometimes the offer and transaction can fail for reasons such as inadequate financing or failure to reach an agreement on repairs. The buyer can sometimes lose the security deposit. If the deal goes through, the security deposit is applied to the down payment.

Buyer may request a home inspection; is a report on the conditions of a house. List repairs and defects.

A name affidavit must be signed if you have used another name or versions of your name. And you will have to show a photo ID.

Well, now that you know what kind of documents you can see and/or sign at the closing, congratulations! You are ready to buy that house. Just make sure you’re on time for your closing. It will usually take place at the title company’s office. And if there’s anything you don’t understand during the process, just ask. Everyone wants you to be a knowledgeable buyer and a happy new homeowner.