The closing marks the final step in the challenging and long drawn out process of buying a house. On the closing day you become the owner of the new house legally. Here are the 4 steps that happen during a closing in [Profile.market].

Real estate closing

The closing agent will go through the HUD Form1 or Disclosure/Settlement statement. This form contains settlement costs you are expected to pay. It should be read carefully to prevent errors. As per RESPA laws this statement must be issued at least one day before closing date.

The seller and the buyer will sign on the warranty deed. This will transfer the title of the property to the buyer. The document contains the names of the buyer and the seller and a property description as well. Proration agreements showing how the seller and buyer share costs of the month in which title transfer takes place will also have to be signed.

City and state tax and utility receipts will be signed by the seller and buyer to acknowledge that they have been paid by either seller or will be paid by the buyer. The name affidavit will also show its presence on the closing day. The buyer has to sign acknowledgement documents saying that he has seen various reports and surveys. The search or abstract title is a document that lists out all documents recorded about the house and is given to the buyer on the closing day.

Mortgage closing

Regulation Z or the truth lending statement is a document that the buyer has to sign after careful scrutiny. It contains details about the loan’s interest rate, loan cost etc. These finance costs are summarized in the appendix of the Regulation Z, called itemization of amount financed. The monthly payment letter shows the split up of monthly payments into principal, interest, taxes, insurance and escrow amounts etc. The note is a document that shows you are borrowing money and backing it with a personal guarantee. The mortgage is a document that places a lien on the house as loan security.

Transferring money

The buyer pays closing costs and down payment for the house. The lender will pay the balance cost of the house. If property taxes and insurance are paid by the lender the buyer will have to open an escrow account on the closing day.

Handing over the keys

The closing day ends when the keys of the house are handed over to the buyer. It marks the beginning of the buyer’s life as a home owner.

There is a lot of free information available to you about buying, selling or investing in [Profile.market] real estate. For complete information about the [Profile.market] real estate market including saleable homes, property values and more please visit the most complete website online dedicated to [Profile.market] real estate at [Profile.website]. I will be more than glad to answer your real estate or mortgage related questions. Call me on my cell at [Profile.cell_phone] or email me at [Profile.email_link].

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