When you buy a house, attending the mortgage closing is the last step before you officially become a homeowner. The closing meeting involves the lender, buyer and seller, all of whom have a stake in the house. In addition, many closing meetings include representatives of the three main parties including lawyers, real estate agents and title agents. The meeting ensures everyone involved in the transaction knows and agrees to the terms of the sale. The exact process and documentation of closing depends on the state, lender and type of loan, but the basic steps are the same in most situations.
Instructions
1. Compile the paperwork pertaining to the purchase. Include documents such as property inspections and appraisals, proof of private mortgage and homeowners insurance, and the good-faith estimate your lender gave to you during the mortgage application process. Bring any other documentation your lender or real estate agent requests or recommends.
2. Inspect the property within one or two days of the closing meeting. Inspect the property with your real estate agent to ensure you don't miss any important issues with the property. Request any repairs or escrow funds to pay for repairs, and reschedule closing once the seller fixes the problems or deposits the money to fix them.
3. Attend the closing meeting to sign agreements with the seller as well as the lender. Sign the lender provided truth-in-lending statement that gives information on the interest and payment information of the loan, the mortgage note that states the loan length, amount and default process, and the deed of trust that allows the lender to repossess the property if you do not pay the mortgage.
Sign agreements with the seller such as the HUD-1 settlement statement that details the sales price and taxes of the property as well as the payments the seller owes to title agents and real estate agents. Sign the deed and title documents to transfer ownership of the house from seller to buyer.
4. Pay the closing costs which will, according to Freddie Mac, generally equal 2 to 7 percent of the mortgage. Common fees include inspection and appraisal fees, application fees and underwriting fees. Pay any points that you traded for a lower interest rate. Points usually equal 1 percent of the loan. Make any lender-required payments such as prepayments of insurance or interest on the loan.
5. Receive copies of all documents and obtain the keys to the house from the seller to complete the closing process.
Tags: real estate, closing meeting, agreements with, agreements with seller, equal percent, estate agent
