Buying a Home - the Closing Process

A Home Buying Article Contributed by Mark Vanner

Buying a Home - Closing the Deal.

For months you have been dreaming of this moment, through the many highs and lows of buying a home this has been your goal, to finally close the deal and be officially named as the new owner of your chosen property. So, what is a closing and what should you expect when you arrive? .

Buying a Home - What is Closing?

Simplified, closing is essentially a meeting, also known as a settlement where the sale of your new property reaches completion. At the closing meeting, the deeds to your new house are exchanged from the seller to the buyer. You will also be asked to complete your new mortgage documents and make a payment usually by bank check, for the down payment of your property.

Buying a Home - Where Will the Closing Take Place.

The closing will take place at a pre-designated location, usually a title-company office, who will also act as a third party during the settlement. The meeting usually takes about one hour or however long it takes for you to complete the documents.

Buying a Home - What Should I Take to the Closing?

When attending the closing, it is advisable that you take with you some forms of identification such as current driving licence and passport. You will also need a certified check to cover the down payment costs and any other outstanding fees. Although closing procedures differ slightly from state to state, personal checks will not be accepted.

Buying a Home - Who Should I Expect to Be Present at the Closing?

The closing is usually attended by a title agent representing the title company and acting as third party, your real estate agent, the seller, the sellers agent and of course yourself. Many home buyers also choose to have a real estate attorney present to overlook the procedure.

Buying a Home - What Will Be Expected of Me at the Closing?

Once at the closing you will be expected to read and approve the loan and title documents before signing them. These documents will usually consist of the settlement statement also referred to as the HUD-1 document, Final TILA statement, mortgage note which is a signed declaration acknowledging your mortgage repayments, deed of trust and possibly a certificate of occupancy if you are planning on moving into a newly constructed home.

All documents should be read thoroughly, if there's anything in the documents you don't understand you should consult a real estate attorney, do not rely on your real estate agent to give you correct legal advice. At the end of the closing you will also be required to settle your down payment and all other closing fee's.

Buying a Home - Completion.

After you have signed the myriad of legal documents presented to you and have made all necessary payments, the deeds to your new property will now be exchanged from the seller to yourself and you will officially become the proud owner of a new home. The keys to the property will now be made available to you, if not at the closing meeting itself, within the next 24 hours.