 Home
Buyers
Tips Archive
What Is A
“Closing”?
A typical closing is a meeting between the buyer(s),
seller(s), representatives or agents for the lender (and title insurance company in some
cases) and the real estate broker. The purpose of the meeting is to transfer title
(ownership) of the property from the seller to you, the buyer.
In some states the broker may represent both
you and the seller; or the closing process may be handled by an “escrow agent”
WHAT HAPPENS AT THE CLOSING?
- The lender’s agent will ask for your paid insurance
policy (or binder) on the house.
- The agent will list the adjustments (what you owe to the
seller: remainder of the down payment, prepaid taxes, etc.; and what the seller owes you:
unpaid taxes, prepaid rents, etc.).
- You will sign the mortgage or deed of trust (the legal
document giving the lender the right to take back the property if you fail to make your
mortgage payments).
- You will also sign the mortgage note (the promise to repay
the loan in regular monthly payments).
- You will then be “loaned” the money to pay the
seller for the house.
- The title (proof of ownership of the property) passes from
the seller to you, usually in the form of a Deed (the document that transfers the title)
signed by the seller.
- The lender’s agent will collect the “closing
costs” from you, and give you a Loan Disclosure Statement (a list of all the items
you have paid for. Be sure to keep this.)
- The deed and mortgage will then be recorded (put on file) in
the town or county Registry of Deeds. A copy of these documents should be mailed to you
within a few days. Be sure to keep them in a safe place along with your other records.
This Tip was excerpted from:
The Homebuying Guide, by Antony A. Phipps and Norma F. Moseley
Abt Books, 1978
ISBN# 0-89011-527-3
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