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 down payment, 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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