Closing is a brief process where all of the necessary paperwork needed to complete the transaction is signed and ownership of the home is legally transferred from the seller to the buyer. It is a formal meeting that most parties involved in the process will attend. Most closings are actually two closings. You’ll be closing on the purchase of real estate, and you’ll be closing on the mortgage loan you are taking to buy that real estate.

In short, the buyer receives the keys and the seller receives payment for the home. From the amount credited to the seller, the closing agent subtracts money to pay off the existing mortgage and other transaction costs. Deeds, loan papers, and other documents are prepared, signed and filed with local property record offices.

What are the CLOSING COSTS?

WHAT TO BRING TO CLOSING

Picture I.D. (drivers license, passport, etc.)


Certified Check in the amount given to you by your lender unless you have already wired the funds


Personal checkbook just in case there are any last minute things that weren’t accounted for on the settlement statement. 


Insurance Policy unless your insurance agent has sent directly to the attorney

The Documents at the CLOSING
  • Truth in lending statement (Regulation Z) - discloses the interest rate, annual percentage rate, amount financed and the total cost of the loan over its life.

  • Itemization of amount financed - summarizes the finance costs, such as points.

  • Monthly payment letter - reveals the break down of your monthly payment into principal, interest, taxes, insurance and any other monthly escrows.

  • Mortgage (the lien on the house as security for the loan) - allowing the bank to foreclose if you default on the note mentioned above.

  • HUD Form 1(Settlement Statement) - contains all the actual settlement costs and amounts.
  • Warranty deed - document should include the names of the buyer, the seller and a description of the property. Often this deed also guarantees that the seller has the right to sell the property. With the signatures of the seller and buyer, this piece of paper transfers the title of property.

  • Proration agreements - describe how you and the seller are divvying up the costs of the house for the month in which it is being bought.

  • Name affidavit - document is certifying that you are who you say you are.

  • Acknowledgment of reports
    -reports regarding the property. These can include surveys and a termite inspection.

  • Search or Abstract of Title
    -a listing of every document that has been recorded about this particular piece of property to give you the house history.