After you find the house you want to buy, make an offer that is accepted by the seller, and get your
mortgage,
you’ve got to survive the closing to complete the deal.
At the closing, or settlement, you and the seller, the lender, all the attorneys, a representative of the title company, and the real estate agent meet to sign the papers and pay the costs that legalize the transaction.
Getting ready
There’s a significant amount of preparation you’ll have to do before the meeting.
Pay for a
title
search
and get title insurance. The title attests that
there are no claims against the property that might
jeopardize your ownership. The insurance guarantees
those findings on the lender’s behalf. If
you want title insurance for yourself, there’s
an extra fee.
Get
homeowner’s insurance.
You’ll have to provide
your lender with proof of insurance on the
new house.
Make inspections.
You should arrange for a final walk-through inspection
and a termite inspection, which is sometimes required,
before the closing.
Your lender is also responsible for doing
some preparation before the closing. By law, he or she must provide
you with a good faith estimate, or a written estimate of the closing
or settlement costs you can expect to pay — usually from
5% to 10% of the loan amount.
There’s no standard closing procedure in the U.S. Although most of the closing costs exist nationwide, the process can vary considerably from state to state, or even from city to city. For example, in some states, there is no actual closing meeting and in others, there is a meeting, but you may not be required to attend. Some closings are conducted by lending institutions and others by real estate brokers or attorneys for the buyer or seller.
Your broker or attorney can explain the specific procedure that will apply to you.
