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