What is a Closing?
The mortgage loan closing (or settlement) is the formal meeting at which you take official ownership of the property. Actual possession of the property varies according to local practice and the terms of the contract. In some areas, possession is given to the buyer on the day of closing. In other areas, this occurs a day or two after. At closing, the buyer requires that the seller prove the title (ownership) is complete and free of anyone else’s claims. Technically, two separate closings occur at this time: the closing of your loan and the closing of the sale. The closing meeting is typically attended by the buyer and seller (and their attorneys if they have them), both real estate sales professionals, a representative of the lender, and the closing agent. The meeting takes about one half-hour to one hour and is usually held at the closing agent’s office. In addition to a number of other activities, you’ll be required at that time to review and sign various documents relating to the mo
A closing, also called “settlement,” is the final step, or consummation, of a real estate transaction between two parties. In a purchase transaction, “closing” is when title to the real estate is transferred to the buyer in exchange for payment of the purchase price and/or loan. In a refinance transaction, “closing” can also refer to the appointment between clients and their settlement agent where the papers are signed to secure the lender and final details are addressed.
