| The day has come and you are about to close | | | | with obtaining a mortgage and transferring |
| on your new home. Once all parties sign the | | | | property ownership in one of two ways. First, |
| papers, the deal will be officially closed | | | | they either roll them into the principal |
| and ownership of the property will be | | | | balance of the new loan or agree to pay |
| transferred to you. This is your opportunity | | | | higher interest rates and have their lenders |
| to make any last-minute changes to the | | | | foot the bill. Second, some home buyers may |
| transaction. | | | | be required to pay these out-of-pocket fees. |
| | | | |
| The day before closing, be sure to gather all | | | | The Actual Closing |
| of the paperwork you have received throughout | | | | |
| the home-buying process (good faith estimate, | | | | Although closing procedures vary from state |
| contract, proof of title search, private | | | | to state, the following parties will |
| mortgage insurance, home appraisal and | | | | generally be present at the closing or |
| inspection reports, etc.). You may need to | | | | settlement meeting: |
| refer to these documents at the actual | | | | |
| closing. | | | | - Closing agent, who may work for the lender |
| | | | or the title company. |
| Most contracts entitle you to a walk-through | | | | |
| inspection of the property 24 hours before | | | | -Attorney: The closing agent may also be an |
| closing. This is to ensure that the seller | | | | attorney representing you or the lender. Both |
| has vacated the property and left it in the | | | | sides may have attorneys. You may or may not |
| condition specified in the sales contract. If | | | | want to have an attorney present, depending |
| there are any major problems, you can ask to | | | | on how comfortable you are with the mortgage |
| delay the closing or request that the seller | | | | provider or lending process. |
| deposit money into an escrow account to cover | | | | |
| any necessary expenses. | | | | -Title company representative to provide |
| | | | written evidence of the ownership of the |
| The Buyer's Responsibilities | | | | property. |
| | | | |
| At closing, your will be required to: | | | | -Home seller. |
| | | | |
| Sign legal documents - These fall into two | | | | -The seller's real estate agent. |
| categories: the agreement between you and | | | | |
| your lender regarding the terms and | | | | -The borrower of the mortgage (you). |
| conditions of the mortgage, and the agreement | | | | |
| between you and the seller transferring | | | | -The lender of the mortgage. |
| ownership of the property. Be sure to read | | | | |
| all documents carefully before signing them, | | | | The closing agent conducts the settlement |
| and do not sign forms with blank lines or | | | | meeting and makes sure that all documents are |
| spaces. | | | | signed and recorded and that closing fees and |
| | | | escrow payments are paid and properly |
| Pay closing costs and escrow items - | | | | distributed. |
| Borrowers handle the numerous fees associated | | | | |