| Make sure the closing is scheduled
before your loan commitment, and any rate lock-in,
will expire. But be sure there is enough time
to finish any loan documentation and properly
complete any home inspections or repairs.
Be prepared at closing to do basically two things:
Sign legal documents:
These documents fall into two categories: The
agreement between you and the lender regarding
the terms and conditions of the mortgage and the
agreement between you and the seller to transfer
ownership of the property.
Pay closing costs and escrow items:
There are numerous fees associated with obtaining
a mortgage and transferring property ownership.
You will be expected to pay these fees at closing.
Some of these fees can be paid by either you or
the seller. Remember: Who pays what closing costs
can be part of the negotiations for the sales
contract. You also will need to show your homeowner's
insurance policy, and any other requirements such
as flood insurance, plus proof of payment.
Tip:
Call your local HUD office for a free booklet
called "Settlement Costs - a HUD guide,"
if you have not already received it from your
lender.
Your sales contract also should have specified
a final walk-through inspection of the house 24
hours before closing. This is to check that the
seller has vacated the property and left it in
good order. If there are any major problems, you
can ask for a delay in the closing, or for money
to be set aside by the seller in escrow accounts
for the necessary repairs.
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