CLOSING DAY: SEALING THE DEAL.
Also known as “settlement” or “close of escrow” the closing is when the seller gets paid and you get the keys to your new home—after you sign a zillion papers! Besides you and your REALTOR®, other participants on hand may include the seller, the listing agent, a mortgage broker or loan officer and the closing agent.
As you’re wading through all the paperwork, it’s impossible to read every word of everything you’re signing. If you tried, your closing would take a week! That’s why you need the peace of mind your team of professionals brings to you. They know what it all means—and especially what it all means to you. If you enjoy reading this sort of thing, a copy can be provided for you prior to closing.
One word of warning…. It’s usually NOT a good idea to have movers lined up for the day of closing. This is because there is a difference between closing and funding. The closing is completed when all the paperwork is signed, but funding marks the final transfer of title and the keys. Funding doesn’t happen until all the money gets transferred to the title company. Sometimes when a closing occurs late in the afternoon, funding does not take place until the next day. It’s customary for the sellers to pay for utilities through the day of closing.
SIGN HERE, PLEASE.
There’s some financial housekeeping at closing that makes things fair between you and the seller. Expenses such as property taxes and HOA fees are pro-rated as of the day of closing so that the seller pays for his share and you pay for yours. These will be reflected on the Settlement Statement.
Among the many documents you’ll be signing at closing:
Mortgage note. The promissory note that’s secured by a mortgage; it’s your personal promise to pay back the loan.
Mortgage. Also known as the “trust deed” or “deed of trust,” mortgage in this sense refers to the document that places a claim on your property. It’s held by the lender as security for the money you borrow.
Settlement Statement. A full list of all the costs involved in the closing. This statement will be reviewed by several parties, including us, prior to closing.
At this point, you’ll leave the closing with piles of paperwork and the keys to your new home! Be sure to save all those papers for tax time, when you can deduct such home buying expenses as loan discount points and other loan fees in the year the home was bought, as well as mortgage interest and property taxes in the years they are paid.
A TRUSTED SOURCE FOR THE LONG TERM
In the future, you may need to consult us on other issues involved with home ownership, like filing for homestead tax exemption, protesting property appraisals, and getting advice on planned renovations. And, of course, remember us when it’s time to sell your home.
CONGRATULATIONS!!!
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