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What is the Closing? by: Judy Marlowe |
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closing is the final step - the culmination of a wide variety of efforts
by many participants, including the buyers and sellers. After signing
the required documents, the buyers leave as the proud new owners. Possession
of the property and co-ordination of utilities transfer has been agreed
upon by both buyer and seller. An attorney (or representative of attorney) conducts the closing. In most cases, the attorney represents the mortgage company loaning money to the buyer. The final mortgage documents to obtain the money to purchase the property are signed by the buyers. In contract for deed and cash transactions, the closing is still conducted by an attorney, but no mortgage company is involved. In attendance at the closing are the buyers, sellers, attorney (or representative), real estate agents, and possibly the loan officer. Buyers generally need to bring a cashier's check (made payable to themselves) for the down payment money. They also need proof of insurance for their new home, and their driver's license. Their loan officer will tell them if there is anything else they need to bring. Sellers generally bring proof of repairs, driver license, and the keys/garage door openers. Real estate agents bring the good faith deposit, clear termite report, and copies of the contract and disclosures. |
Some of
the documents presented at closing are: mortgage loan papers, deed, termite
inspection, appraisal, land survey, home warranty, title insurance, and
closing statement. The closing statement overviews all the money related
to this transaction and how it is disbursed. The buyers side of the closing
statement shows the price of the home, costs of obtaining the loan, loan
amount, setting up the escrow accounts, taxes, insurance, title search,
attorney fees, recording fees, down payment, and nets to the amount of
cash needed from the buyers. The sellers side of the closing statement
shows their expenses, such as: real estate commission, attorney fees,
transfer tax, tax pro-ration, mortgage loan payoff, and nets to the amount
of money the seller will receive at the end of the closing. It is recommended that buyers and sellers work with experienced real estate agents to help them get to the closing table in a timely fashion. Real estate agents can oversee and co-ordinate all the people and paperwork needed to get buyers and sellers to this happy ending.
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