Together we have found your house, made the offer and signed a contract. After months of real estate negotiations, inspections and anticipation, the closing is scheduled. But what exactly happens at a closing?
Usually, a title company, attorney
or independent settlement agent hosts the closing. The agent ensures that there
are no existing claims on the home during the transfer, and facilitates
document signing and payments.
Keep in mind the following tips:
- Request an estimate of closing costs before you even apply for a loan. Shop around and obtain multiple estimates of closing costs from the lenders you are considering, just as you would shop interest rates.
- Make sure there is no significant increase in closing costs from the good faith estimate (GFE) to the HUD-1 settlement statement. Ask the lender to explain and justify any fee with which you disagree or do not understand.
- Understand that closing costs are negotiable, that you may be able to get them lowered. However, you should also understand that when a lender is willing to give you a break on closing costs, they will often simply bump up the interest rate incrementally so that you end up paying about the same amount for the loan over time.
- Ascertain if your seller is willing to pay some or all of the closing costs.
The property officially changes
ownership at the closing. Buyers agree in writing to the terms of the mortgage,
acknowledge that they accept the home in its current condition, and pay the
remaining funds owed to the seller. Sellers who offer monetary credit settle up
at the closing and pay the listing and sales agents from those funds.
When the signing and payments are
complete, you'll receive the keys to the front door. Welcome to homeownership!
As your real estate agent, I will
be there from listing to closing. Call me at 317.777.1805 or email me at
Scott@LacySells.com.
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