| It sure wasn’t easy to undergo the negotiating part | | | | cost. Read further to learn the specifics. |
| of home buying. But when all of that has been clear | | | | Documents needed in Signing |
| and done, you should be ready to enter the last phase | | | | - The RESPA- This stands for Real Estate Settlement |
| which is called the closing. | | | | Procedures Act. This document ensures proper |
| This is actually the moment you have been waiting for. | | | | disclosure and avoids hidden costs in the transaction. |
| If everything goes out smoothly, you will be walking out | | | | - The TIL – This stands for Truth in Lending |
| of the place, with keys in your hand and the | | | | Disclosure Statement. This document should be |
| documents to prove that you are now the legal owner | | | | secured so that you can assure that the cost of |
| of the property. | | | | mortgage is what you expected. |
| Things to do Before Closing | | | | - HUD-1 Form- This is the settlement form used by the |
| Before the transaction can close, it is important that | | | | closing agent to declare all charges that needs to be |
| you make your final walk to inspect the condition of | | | | paid by the seller and the buyer. |
| the property. You are allowed to do this before you | | | | - The promissory note or mortgage note- It is the |
| sign any papers. If you find damages, the closing | | | | written promise to pay the loan. |
| process will be withheld until both parties have come | | | | - Deed of Trust- A common document used in |
| up with an appropriate solution. | | | | financing to secure the interest of the lender, in case |
| As the buyer, you also have to be prepared with | | | | the borrower is in default. |
| money to pay the upfront cost of home purchasing. | | | | - Warranty Deed- A document that proves the seller |
| And it is very important to be ready with it since | | | | is free of any encumbrances and he or she has all the |
| payments involve thousands of dollars. Later on this | | | | legal rights to sell the property. |
| article, you will find out what are the common fees to | | | | - Certificate of occupancy- This is applicable for newly |
| be paid. | | | | constructed homes. |
| On the Big Day | | | | |
| On the closing day, several parties will be present to | | | | Closing Costs usually have three main categories: The |
| ensure that both parties (seller and buyer) are able to | | | | lenders, third party and government fees. Aside from |
| understand what they are getting themselves into. | | | | the downpayment, the following will show you the |
| These includes the lawyer, the real estate agents, | | | | common items paid for closing under each category: |
| closing agent and the title company representative. | | | | - Lenders fee- These are fees covering processing of |
| The closing agent may be the escrow agent. They | | | | papers, for locking in interest rates and preparation of |
| are in-charged of holding the money and disbursing | | | | documents. |
| them to the right parties. They also hold the deed given | | | | - Third party Fees- Appraisal Fee, Settlement or |
| by the seller and submit them to the county office for | | | | Closing Fees, Credit Reports, Inspection Fees, Title |
| recording. | | | | insurance and search fees. |
| There are two things expected to happen before the | | | | - Government Fees- Fees for recording the deed and |
| closing process is concluded. First is the signing of | | | | local and state taxes. |
| documents. The second is the payment of closing | | | | |