What’s Involved in Closing on Your Newly Purchased Home?

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Closing is the end of the line when it comes to house purchasing. Earlier you or your lawyer negotiated a contract with the seller. Next the lawyer contacted a title company to complete a search of title to the property. This search applies to all properties, including new ones. The purpose is to ascertain that you can have title to the house and the land upon which it stands. The search also establishes that the property is lien free regarding tax or previous mortgage liabilities.

Things you need:

Your lawyer
An assurance that all searches have been completed
An assurance that the loan package has been sent to the lawyer or the Title Company
The settlement statement is ready. You need to have seen a copy of this several days before closing

Step 1

Once the settlement statement has been received get your lawyer to check it out. Are the charges and fees what you expected. If not get the matter rectified as soon as possible.

Step 2

The settlement statement will show the amount of the first year’s insurance premium and the outstanding property tax liability. The money for these items will have to be placed in an escrow account. Don’t worry if you don’t understand all of this. Providing you have a lawyer to do the work for you, it’s his job not yours. However, always keep abreast of what is happening and query things you don’t understand or think are wrong.

Step 3

On the closing day your and your lawyer along with the sellers team go along to the Title office for the act of closing. The lawyers should have possession of the lenders cashier’s check. They will ask you to identify yourself by means of photo ID. Then you sign all the necessary documents. Be sure to ask for photocopies of everything you sign. The seller does his share of the signing. When the signing process is complete the loan check is handed over to the seller and you then receive the keys to your new home. The Title Company handles the loan and legal papers. It’s over you can now move in.

Tip

Always check on everything that happens. Keep notes of dates and document numbers. Don’t assume someone else is doing it. They might but they can still make mistakes

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Comments

One Response to “What’s Involved in Closing on Your Newly Purchased Home?”

  1. Home Buying 101 | Financial Learn on May 15th, 2008 4:51 pm

    [...] Closing The Deal - You like the home, you have the mortgage, you’ve inspected the home and now it’s time to close the deal. [...]

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