Final Details & Closing
It's The Day You've Been Waiting For!
We will accompany you to settlement, which will be led by a closing agent – typically an attorney or title company representative. He or she will complete the transaction by assuring all parts of the contract have been performed.
You will not see any cash exchange hands; rather, you'll be busy signing a number of important closing documents. A good closing agent will explain each one to you as you go along.
At your closing:
- Title and mortgage liens are properly recorded.
- Title insurance is provided.
- Old and new lender instructions are obtained.
- Any problems noted at the walk-through are resolved.
- Deeds of trust or mortgage and accompanying notes are reviewed.
- Lender forms and settlement sheets are explained.
At the closing meeting, you will receive:
- A HUD-1 Settlement Statement, listing all the services and charges to you and the seller. You'll be able to see this document the day before closing.
- A Truth-in-Lending statement. You should have received this within three days of applying for the loan. This details the actual cost of the mortgage.
- The mortgage note itself - this is your promise to repay the loan.
- The deed - signed by the seller at closing, this transfers ownership of the property. You may only get a copy. When the actual deed is recorded with the county listing you as the owner, it will be mailed to you
- Any other affidavits. For example, an affidavit may state that you will use the property as your principal residence.
Preparing for Closing costs
Typically, closing costs are 3 to 6 percent of the sales price. There are fees such as insurance on the title to your home, taxes, transfer costs, attorney fees (if necessary) and hazard insurance.
You may also be required to prepay an up-front reserve account of tax and insurance payments to ensure that there are sufficient funds in your account to meet the obligations when these are due. In some cases, the seller will agree to pay closing costs — this is one of those "negotiable details."
Here’s the day you’ve been waiting for. The papers are in order and money has been exchanged. You’re handed the keys — the home is now yours!