| A typical closing is a
meeting between the buyer(s), seller(s), representatives or agents for the lender (and
title insurance company in some cases) and the real estate broker. The purpose of the
meeting is to transfer title (ownership) of the property from the seller to you, the
buyer. In some states the broker may
represent both you and the seller; or the closing process may be handled by an
“escrow agent”
WHAT HAPPENS AT THE CLOSING?
- The lender’s agent will ask for your paid
insurance policy (or binder) on the house.
- The agent will list the adjustments (what you owe to
the seller: remainder of the downpayment, pre-paid taxes, etc.; and what the seller owes
you: unpaid taxes, pre-paid rents, etc.).
- You will sign the mortgage or deed of trust (the
legal document giving the lender the right to take back the property if you fail to make
your mortgage payments).
- You will also sign the mortgage note (the promise to
repay the loan in regular monthly payments).
- You will then be “loaned” the money to pay
the seller for the house.
- The title (proof of ownership of the property) passes
from the seller to you, usually in the form of a Deed (the document that transfers the
title) signed by the seller.
- The lender’s agent will collect the
“closing costs” from you, and give you a Loan Disclosure Statement (a list of
all the items you have paid for. Be sure to keep this.)
- The deed and mortgage will then be recorded (put on
file) in the town or county Registry of Deeds. A copy of these documents should be mailed
to you within a few days. Be sure to keep them in a safe place along with your other
records.
This Homebuyers Tip was excerpted
from:
The Homebuying Guide, by Antony A. Phipps and Norma
F. Moseley - Abt Books, 1978
ISBN# 0890115273
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