What to Expect During Closings in the Real Estate
After you have gotten pre-approved for a mortgage loan, figured out your financial situation, and found the perfect home for you, you are headed towards the last step in the real estate purchase. The closing procedure is the final step and you should be aware of what you can expect during the closing on a house.
First, you will have a closing meeting. This is where the ownership of the home is transferred from the seller to the buyer and all document signing and collection of funds is completed. There are numerous documents that have to be reviewed and signed that relate to the loan and the closing costs. This meeting can take over an hour due to all of the information that is exchanged.
The documents that you will review and sign include the settlement sheet, loan documents such as the mortgage note and the Truth-in-Lending statement, monthly payment letter, warranty deed, and tax and utility receipts.
The seller then submits a certified cashier’s check to cover the closing costs and then a check from the lender covering the mortgage amount is given to the closing agent. You will also need to bring a copy of your homeowner’s insurance so that the lender can review these before closing on the home.
What money is due at the time of the closing is an important part of the meeting. You will have to pay a portion of the closing costs, which vary from every state and are negotiable so they can vary that way as well. You will also have to pay the payment for the home, which is the down payment. Any escrows, which are the annual taxes, insurance, and other items that the lender is paying will be established.
The closing agent will record the mortgage and the deed after the meeting, which can take a couple of days. No funds will be disbursed until the entire transaction has been recorded, once that has happened the buyer is the official owner of the home.
Once the closing process is complete and everything is on track you will be given keys to your new home. This is the very final step and is a way of showing that everything has been completed properly and in order so that you now officially own the home.