What is a Closing?
A closing of a real estate transaction is the meeting, usually held at your escrow officer s office, where final documents pertaining to the sale/purchase of a piece of property are reviewed by the parties involved, signed as required and funds conveyed to complete the transaction. Once the sale has been recorded in the buyer’s name usually the following day the property ownership has been transferred to the buyer.
Two confusing terms that appear in the real estate buying and selling process are closing and settlement. What is the difference? Not a lot really. A settlement is the process in funding the loan. At the closing several documents are gathered together (including but not limited to): Deed for home Notes Deed of Trust/mortgage Mortgage insurance certificate Binder for Title insurance Survey Homeowner’s insurance policy binder Misc. Addendums Certificate of occupancy FHA/VA Paperwork Uniform Settlement Statement At the closing there are many costs associated with the settlement and they can vary from settlement to settlement. The lender charges the borrower for a number of fees including loan origination, points, credit reports, inspection, document preparation, and mortgage insurance. In addition you may have title fees, recording fees, surveys, and other real estate taxes. The logistics of the closing are simply the location and disbursement of funds.
• Closing, which is also known as “settlement” or “escrow,” is the event where the title to a property is transferred from seller to buyer. Closing is typically held in an office, such as that of an attorney, title agent or title insurance company, and involves the completion of all the necessary paperwork to finalize the agreement between buyer and seller. In addition, all financial issues are settled at closing—closing costs—and once the title is successfully transferred, the necessary documents are prepared, signed, and filed with local authorities.
