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What to expect at closing
Your closing date -sometimes referred to as your settlement date - will be assigned once your mortgage loan has been cleared to close. After your closing, you are the homeowner! Here is what to anticipate on your closing day.
Who is present at your closing
Several people are required to attend your closing, representing both the sellers and the buyer.
- Homebuyer
- Seller
- Attorney for both parties
- Real estate agent
- Escrow/closing officer or Lender’s attorney (depending on state)
Closing costs
Before closing you should receive a “good faith estimate” of what closing costs you can expect at settlement. These costs need to be paid at the closing, usually by certified check. Closing costs vary by area, but generally cover:
- Attorney’s fees
- Escrow fees
- Property taxes
- Loan origination fee
- Recording fees
- Survey fee
- Title insurance
- First premium of mortgage insurance (if applicable)
- Paid receipt for homeowners insurance policy
- Loan discount points
- Document preparation fees
Papers you will sign at closing
There are many papers to sign on closing day, and they vary according to location and lender. Be sure you understand all the documents. Among the papers you will need to sign are:
- Original note and deed of trust or mortgage
- Mortgage note
- Lender's Escrow instructions
- HUD-1 Settlement Statement
- Escrow instructions
- Real Estate Settlement Procedures Act Document (RESPA) Documents
- Truth in Lending Disclosure Statement (TIL)
- Warranty Deed
- Escrow Analysis
- Tax Authorization
Your closing step-by-step
Closings usually follow a standardized process with room for negotiations (such as unreported problems encountered in the final run-through) if necessary.
- Present the receipt of your homeowner’s insurance to the lender.
- Review and sign the HUD-1 settlement statement with the seller and closing agent.
- Pay closing costs with certified checks.
- Review and sign remainder of documents.
- Establish an escrow account to cover taxes, insurance, interest and private mortgage insurance if applicable.
- Review and sign mortgage or deed of trust.
- The lender will give a check to the closing agent covering the amount of the mortgage.
- You will receive the title to the property.
- Get the keys to your new home.
- The attorneys, and escrow and title company will record the legal documents.
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