Closing on Your Home
The closing, or settlement, is the final step in legally transferring home ownership from the seller to the buyer.
It usually occurs at a meeting, but sometimes an escrow agent processes the paperwork and collects and disburses the funds. Closings are handled differently in different geographic locations, so you will need to find out how they are conducted in your area. Regardless of the local customs of the closing process, it will probably be in your best interest to consult an attorney who practices real estate law for your closing.
The following identifies some of the common closing costs you might need to pay at closing:
1. Lender' Fees
- Loan origination fee
- Commitment fee
- Loan discount points (if applicable)
- Appraisal fee
- Credit report fee
2. Prepayments
- Interest from the date of the closing to the beginning of the first monthly payment
- Mortgage Insurance Premium (if applicable)
- Hazard Insurance Premium (or receipt of payment)
- Property Tax and Insurance prepayment account
3. Additional Fees
- Title charges
- Recording and transfer fees
- Attorney fees
- Termite inspection, professional home inspection, and survey fees
Attorney Responsibilities
Aside from the certified checks and proof of insurance, the closing agent or attorney handles everything else and is responsible for:
- Conducting the title search
- Arranging for title insurance
- Obtaining the loan package from the lender
- Verifying completion of all inspections
- Verifying the completeness of all contingencies
- Making sure all required documents are included
- Reviewing all documents
- Ordering the survey
- Filing signed documents with the proper agencies
- Disbursing the funds
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