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The day you close on your home. This is when all
parties sign the papers and formally close the
deal. Then, ownership of the home is transferred
to you. It's also your last chance to change anything
you don't like about the transaction.
Keep in mind that closing procedures vary, even
within the same county. Your attorney or the closing
agent can verify the procedures for your closing.
Joining you around the table at this closing,
or settlement meeting, will usually be the following:
• The closing agent, who may work for the
lender or title company, or may be an attorney
representing you or the lender. In western states,
it is often the escrow agent who handles the closing.
• The seller
• Attorneys for both sides
• A title company representative
• The seller’s real estate agent
The closing agent conducts the settlement meeting
and sees that all documents are signed and recorded,
and that closing fees and escrow payments are
paid and properly distributed.
Documents to be signed:
• HUD-1 Settlement Statement: A detailed
list of all costs related to the sale of the home.
It is signed by you and the seller, who may be
paying some of the closing costs.
• Truth-in-Lending Statement: You received
the first version of this statement after applying
for your mortgage. It outlines the cost of your
loan including the annual percentage rate (APR),
which includes any points and fees. The interest
rate calculations can change by closing date.
This is the final Truth-in-Lending statement.
• Mortgage note: This is a legal document
stating your promise to repay the mortgage. It
indicates the amount and terms of the loan, and
what the lender can do if you fail to make payments.
• Mortgage or Deed of Trust: This document
secures the note and gives your lender a claim
against the home if you fail to live up to the
terms of the mortgage note.
• Certificate of Occupancy: If you are buying
a newly constructed house, you need this legal
document to be allowed to move in.
Just one more thing: You are handed the keys.
Congratulations on now owning your new home.
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