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