As a buyer, what can you expect to happen when you close on your new home? Well, first off, let’s talk about what a closing is.
A closing is a meeting where the buyers and sellers get together to sign all the documents required to formally sell a home and transfer its title to the new owner.
The closing agent will provide an itemized list of charges that need to be paid… like the amount of money the buyer owes the seller and any prepaid taxes. This information will appear on what is called a HUD-1 Settlement Statement. You will get a copy of that statement prior to the closing so there are no surprises.
The buyer also signs a truth-in-lending statement as well as a mortgage document that states, in detail, the terms and conditions of the mortgage agreement. The buyer signs to accept the terms and promises to repay the loan. The buyer pays any closing costs that are due and receives a signed settlement statement.
The seller gives the buyer title to the house in the form of a signed deed. this deed and the mortgage documents are then recorded in the county register of deeds office.
Once all the paperwork is signed you get the keys to the home and, congratulations, you are now the new owner!