Buying a New Home? You Need to Know What Happens At Closing

The Closing Deal – What You Need to Know!

When you are about to close on your home, you are taking the final step towards home ownership. Of course, it is always good to know what to expect, so we have created an overview containing all the information you need to know about your closing deal! So, to find out more about closing on a properly, be sure to read the information below.

What Happens When Closing?

The closing of a home purchase usually takes place at a title company or the escrow office. There will be several parties present during this meeting; this includes the escrow officer, closing agent, the real estate representative of the seller, your real estate professional and yourself.

Unfortunately, closing also means you must sign many documents. Firstly, you must sign a promissory note stating that you have accepted a mortgage from a lender and agree to repay it with interest. You must also sign a special document that puts the home up as collateral for the mortgage; this collateral will only be claimed when you cannot make your payments.

During closing, the lending agent will transfer the money to the seller. The seller then signs the deed and transfers the ownership of the property to you. Then, the title company will prepare all your documents and make sure they are archived properly.

The Affidavits and Declaration

In addition to the documents we already described, you will be required to sign affidavits and declarations as well. These documents enable you to declare certain statements as true; for example, you state that the purchased property will be your principle place of residence or that required repairs were executed before closing.

Since affidavits and declarations can include important statements, it is vital to read through these thoroughly. Even though you may be inclined to put your trust in the professionals surrounding you, it is best to read through everything and not to rush things. Unfortunately, not everyone reads through everything they are signing during a closing, especially when you consider the amount of paperwork involved.

Tips for Closing

Most potential homeowners who are closing can feel rushed to work their way through all the paperwork at the spot; therefore, it is recommended to request some of the paperwork ahead of time and read it at your own pace before the closing takes place. Even though not all documents can be provided to you beforehand, you can avoid some work by acquiring some of the documents before closing.

If you have any legal questions during closing, don’t be afraid to ask them. You could have your own trusted legal representation with you, but most Americans don’t have legal representation with them when closing on their property. Therefore, it is extremely important to make sure your questions are answers, and to never sign anything you don’t fully understand.

Conclusion

Getting more familiar with the documents you are required to sign during closing could help you to speed up the process. However, it is always a good idea to take your time and make sure you understand everything fully before you put your signature on any of the documents during closing.

Sandra Dedeyne