The Closing

The closing is the final stage of a real estate transaction. When title is transferred and the deed recorded, the home officially becomes property of the buyer. Those involved at a closing typically include the buyer, seller, real estate agents for both sides and a title agent, which can be an attorney, or several attorneys depending on the area of the country. In some parts of the country, the choice of the title agent is up to the seller, and in other parts it's up to the buyer.

The title agent will review all the paper work with the appropriate parties, disburse all funds accordingly and ensure that documents are recorded properly.

When preparing for your closing, review your loan terms and your purchase agreement. I can help explain those to you if you have any questions. Also, prior to closing, conduct a final walk-through inspection of your new home to ensure all repairs that were agreed upon have been made and no items in your agreement have been changed or removed from the house.

Once at the closing, you'll be asked to read and sign several documents including the settlement statement detailing charges to the buy and sell sides, the truth-in-lending statement that states the annual percentage rate of your loan and other terms and conditions, the mortgage note that represents the buyer's promise to pay the lien holder, and the deed, which documents the transfer of ownership from the seller to the buyer.

Also at the closing, you must pay your closing costs, down payment and set up an escrow account for taxes and insurance if required by your lender. Closing costs typically include an appraisal fee, homeowners insurance, etc. They may also include mortgage points and other fees.

Closing costs are in addition to your down payment and vary from lender to lender. They typically make up 2 to 6 percent of the mortgage loan amount. If you want more specifics, your lender will provide you with a good faith estimate. Remember to pay with a certified or cashier's check rather than a personal check, and don't forget to bring your I.D. Most title companies will not accept personal checks for such large amounts.
Finally, don't forget to take care of those final moving details before you get your keys, such as changing your address, switching your utility accounts to your new address and lining up that moving truck.

Now you know what to expect at your closing, but if you want to learn more, contact me today.

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YOUR Personal Guide to Real Estate