What will happen at closing?
• Escrow officer will collect all your lender requirements • Final settlement statement will be reviewed and signed • Closing documents will be reviewed, signed, and notarized • Information on homestead exemption will be provided • Funds are collected and disbursed • Keys, garage door opener(s), and other property information exchanged top What is Title Insurance? For many people, the purchase of a home represents the single greatest investment in their lifetime. If you are purchasing a home with new financing, you’ll be required to purchase a lender’s title insurance policy. This policy only insures the lender’s interest in your property against losses arising from title defects. In other words, the lender’s policy protects the outstanding balance of the mortgage for the lender, but it DOES NOT protect you or your interest in the property. To protect your interest in the property, you will be issued an owner’s policy of title insurance. This policy is paid by the seller (per contract)
Basically, you will meet with your broker, the sellers broker, most likely the seller and the closing agent. The closing agent will have several documents for you and the seller to sign. While the closing agent will give you a basic explanation of each document, you may want to read each document and/or consult with your agent to make sure you know exactly what you’re signing. Before you go to closing, your lender is required to provide you with a “good faith estimate” which details your closing costs, how much money you’ll need to bring to closing and a list of documents you’ll need at closing. If you don’t receive those items, it is important to contact your lender BEFORE closing. The “HUD Settlement Cost Booklet” located at www.hud.gov will also help you understand your rights.
Basically, youll sit at a table with your broker, the broker for the seller, the seller, and a closing agent. The closing agent will have a stack of papers for you and the seller to sign. While he or she will give you a basic explanation of each paper, you may want to take the time to read each one and/or consult with your agent to make sure you know exactly what youre signing. After all, this is a large amount of money youre committing to pay for a lot of years! Before you go to closing, your lender is required to give you a booklet explaining the closing costs, a “good faith estimate” of how much cash youll have to supply at closing, and a list of documents youll need at closing. If you dont get those items, be sure to call your lender BEFORE you go to closing. It will help you understand your rights in the process. Dont hesitate to ask questions.
