Your Guide to What Happens at a Closing
It’s the final step you have to take before achieving the dream of home ownership. It’s the property closing and while it can mark the fulfillment of a long-held goal, it can also be stressful to some, particularly those who’ve never been through the process of buying a new home before. Cliffco Mortgage Bankers is very familiar with the ins and outs of property closings. We want to take you through the process and demystify it so you can understand what to expect and be prepared if and when you get to close on a piece of property.
What Is a Real Estate Closing
According to the real estate website, Zillow, the closing is the last step in a purchase, when the buyer becomes the legal owner of the home that was sold. It is essentially a transfer of legal documents as the title to the home is passed from the seller to the buyer. According to Curbed, the basic idea is that the buyer gives the seller the purchase price money and the seller gives the buyer their deed.
The closing is usually held in an office, often belonging to one of the lawyers involved or perhaps a broker. The buyer and seller usually attend as will their attorneys. Real estate agents don’t have to attend the closing, but they often do come. A representative from the mortgage company will often come as well as somebody from the title insurance company and the escrow company. The escrow company is a neutral third party that collects the funds and documents needed in the closing.
The Mechanics of a Closing
It’s important that you bring all of the paperwork to the closing. Among the documents that may be passed are your deed, the mortgage note, which is a promise by the homebuyer to repay the lender, and the loan documentation as well as the sales contract. It’s extremely important that all parties review this documentation and make sure they understand the terms of the loan and the sale. If you think you see errors, don’t understand the document or see something that’s different from what you expected, the Consumer Financial Protection Bureau recommends that you not sign the document until all issues are resolved. Most lenders require a title search on the property to make certain there aren’t any issues like liens associated with the home.
While the documents are looked over and signed, there will also be a transfer of funds. The buyer needs to provide the purchase price at the time of the closing. It’s important to bring the type of check specified in the contract, often a cashiers check or a bank certified check. There will almost certainly be closing costs and escrow fees that will need to be paid as well. When all documents are signed and all fees are paid, home ownership changes hands and that’s often symbolized by the passing of the keys to the home by the seller to the buyer.
Understanding the Home Loan Process with Cliffco Mortgage Bankers
If you’re thinking of purchasing a home, it’s important that you get as much information as you can on what is one of the biggest decisions you’ll ever make. You’ll want to know if you’ll qualify for a home loan and how much you’d qualify for. Cliffco Mortgage Bankers can help you understand the process and give you the information you need. Contact us today.