The Closing

The closing (or settlement) is the meeting at which you sign all the paperwork and make the payments needed to become an official homeowner.

The title company, which issues the title insurance, usually provides a forum for the exchange of documents and the releasing of funds during the meeting.

The title or escrow company acts as a third party for the benefit of the buyer and the seller.

Prior to the meeting, your title company, escrow company or attorney will review with you a copy of the HUD-1 Settlement Statement. This document will provide the final total for your closing costs. It establishes the total funds you must bring.

Once the loan is approved, your lender will call you to come in and sign the documents, as well as the final documentation required to make you a homeowner.

There are many documents that need to be signed prior to receiving the keys to your home. For this reason, this stage typically takes one or two hours.

The three most important documents you will sign are the note, the mortgage (deed of trust), and the deed.

• The mortgage (promissory) note represents your promise to pay the lender according to the agreed terms, including the dates on which your home loan payments must be made and the location to which payment must be sent.

• The mortgage, also known as a deed of trust or a security instrument, is a contract that makes your home the security on the loan or guarantees its repayment.

• And the deed is the document that transfers the ownership of the property from the seller to the buyer.

You will also need to obtain a certified or cashier's check to pay the closing costs.

Once these documents are signed and the closing costs are paid, you are a homeowner!

Go ahead and call the movers!

Believe me, moving in to your own home is an unforgettable experience. :-)

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