Closing is the consummation of the real estate transaction, and I will be an invaluable asset in helping you prepare for it.
The closing process varies from state to state. In Indiana, closing is done face-to-face; that is, the buyer and seller sit down at the same table to complete the sale. A face-to-face closing involves the resolution of two issues; first, the promises made in the sales contract are fulfilled, and second, the buyer’s loan is finalized, and mortgage lender disburses the loan funds. It may be conducted at the title company or lender’s office—or at some other mutually agreeable location. The following people may attend:
A representative of the lender or the title company typically presides. He/she will lead a review of an array of documents, such as the title insurance policy, surveys and other items.
When all parties are satisfied that everything is in order, the exchange is made. All pertinent documents must be recorded in the correct order to ensure continuity of title. For example, if the seller is paying off an existing loan and the buyer is obtaining a new one, the seller’s mortgage must be satisfied and recorded before the buyer’s since the buyer cannot pledge the property as security for the loan until he/she owns it.
As the buyer, you will be signing a lot of documents at your closing. these will include, but are not limited to:
The HUD 1 or Uniform Settlement Statement. This statement is required by federal law. It adds together your loan amount and closing costs and deducts your down payment to arrive at the amount of cash you will need to close. (As a buyer, you should be given a copy of the HUD statement at least one business day prior to your closing.) Itemized costs may include:
You may or may not take possession of the home on the day that you close; those details will have been specified in your purchase agreement. Either way, be sure to take the time to celebrate your closing—welcome to the American dream!
F.C. Tucker on "Buying Your First Home"