The Real Estate Closing; Step By Step For Buyers and Sellers
As the buyer or seller, you will have to appear
at a meeting in which all of the final legal details will be handled. Others in
attendance are the realtor, lender, and closing agent. The meeting usually
occurs either at an agent's office or a lending institution such as a bank
or mortgage company. This is "the closing."
The main emphasis is to review all of the paper work
and to sign the different financing forms and transfer the title to the new owner. For the buyer and seller, knowing what to expect can ease concerns during the process of closing.
Typically the buyer will have more of a role to play in closing on the house. However, the seller will have an important role to play too. Usually, a review of the settlement sheet is presented first for both to sign and agree upon. You will need to be sure about the terms and agreements before you sign.
Next the buyer will be required to show proofs of required mortgage insurance
And that all necessary inspections have been completed
according to the guidelines of the contract. All parties must be in complete
agreement over the terms of the transaction and sign the documents.
Once this phase is completed both parties will present a certified check for the entire amount of the closing costs
The lender will present the funds paid to the closing agent. Also, any funds due will be submitted at that time to the lending agent.
Depending on the requirements that you agreed to as a buyer, for example, your bank or mortgage company may have stipulated that you will need to set up an escrow account to pay your property taxes, or maybe your designated home insurance provider out of this account, this will be efficiently handled at the closing meeting for your new home.
Other issues such as the recording of the deed will be discussed.
Don't be surprised if you are informed that you only have a legal claim to the property once it is officially recorded at your local courthouse.
It is to be understood that you may only move in once you have legal ownership of a clear title, and this process can take a few days to over a week. This is why the disbursement of funds to anyone involved in the transaction will not be paid until the deed recording is completed.
If you're the buyer you will need to know what forms you will be required to sign
Take a few moments, write down a checklist and bring copies of any paperwork you have been required to sign or review.
Truth in Lending Statement
An important document known as the Truth in Lending statement will contain vast amounts of financial information for the buyer. This statement will include information such as your interest rate for the mortgage, amount of money financed, and your monthly payment schedules, along with the total amount paid based on the length of your loan.
Detailed information will be found in other paper work for the buyer too.
The mortgage note and other assigned specifications will spell out in specific terms, such as how and where the note is to be paid and the institution's right to reclaim their rights to the property.
This legal documentation will also explain that you're to meet other specific requirements, such as paying any necessary insurance and taxes yearly, that is, if you are allowed to pay this independently, and it is not part of an escrow account.
The value and importance of a good realtor
is quickly appreciated in the closing meeting. Many of the processes involved are readily explained by a caring and competent professional way before the closing ever takes place.
Make sure that you do your part by taking the time to ask any questions you have with your realtor, and studying, if necessary, your part of the process, whether you're the buyer or seller.
Closing
Home buying and selling can be a pleasant experience for all
of those involved without a lot of hassle and grief. Just make sure you
approach it with the right attitude and guidance.
Other pages you might like
Home Page > Real Estate Articles for Buyers and Sellers >> Closing
