| Settlement (also referred to as closing) is a critical | | | | give you peace of mind. Final Walk-Through - A day |
| part of the home buying process.During settlement, | | | | or two before settlement, you will conduct a final |
| ownership of the home gets transferred from the | | | | walk-through of the house. This is your last chance |
| seller to the buyer. This involves a lot of paperwork, | | | | to view the property before taking ownership of it. |
| a lot of signatures, and usually a lot of questions.As a | | | | Make sure everything is as you remember it (no new |
| home buyer, you can prepare for settlement by | | | | damages, all conveyed items present, etc.). Also, if |
| understanding what you need to do before the | | | | you made the contract contingent upon certain |
| actual day of settlement. This will make the entire | | | | repairs (based on the home inspection), make sure |
| home buying process smoother and less | | | | those repairs have been completed. Settlement |
| stressful.Some of the items on this list may seem | | | | Statement - At least one business day before |
| obvious, but I've included them anyway to make the | | | | settlement, you should receive a settlement |
| list as complete as possible. Keep in mind that | | | | statement (also referred to as a HUD-1 statement). |
| settlement laws and requirements may vary from | | | | This document will list all the costs you're required to |
| state to state.Pre-Settlement Checklist: | | | | pay at settlement. Review it carefully. If you find |
| Loan Approval - This is first and foremost, because | | | | errors or items you don't understand, bring it up with |
| you can't proceed toward settlement / closing until | | | | your real estate agent, attorney or settlement agent. |
| you get approved for the loan. Once you're | | | | Don't let your questions go unanswered!Certified |
| approved for the loan, the settlement process is in | | | | Check - In most cases, you will need to bring a |
| motion.Truth-in-Lending Statement - Shortly after | | | | certified check with you to settlement to cover all |
| applying for the loan (usually within three business | | | | the closing costs. The amount of this check will be |
| days), the lender will give you a truth-in-lending | | | | based on the settlement statement. Be sure to bring |
| statement. This statement shows the total estimated | | | | a photo ID with you as well. |
| cost of the loan, including fees, interest rates and | | | | Understanding the settlement process will help |
| payment terms. Set the Date - The time and place | | | | ensure a smoother home buying process. Be |
| of settlement will usually be agreed upon between | | | | proactive about the items on this list. Don't just wait |
| the lender, the settlement company, and the buyer | | | | for them to happen -- make them happen.* |
| and seller.Transfer Utilities - Call to transfer all | | | | Copyright 2006, Brandon Cornett. You may republish |
| applicable utilities (gas, electric, etc.) to your name, | | | | this article if you keep the byline and author's note, |
| effective on the settlement date.Hazard Insurance - | | | | and also leave the hyperlinks active.Learn more! |
| Most lenders will require hazard and liability insurance, | | | | To learn more about the home buying process visit |
| at least up to the loan amount. You need this to | | | | HomeBuyingInstitute.com, the Internet's largest library |
| satisfy their requirements, but you should also | | | | of home buying advice. Visit: today! |
| choose a policy that protects your investment and | | | | |