|
Back
Buyer Tips
Home |
|
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
|
