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The mortgage loan closing (or settlement) is the final step to
transferring ownership of your house to the home buyer. Even
though the purchase contract has been signed and the homebuyer's
loan request has been approved, the homebuyer has no rights to
the property, including access, until the legal title to the
property is transferred to the buyer and the loan is closed.
Every area of the country has its own unique closing customs.
Your REALTOR® can guide you through this process and make sure
everything flows together smoothly.
At closing, you will execute the deed to the property, and
the homebuyer will sign the mortgage loan documents, and the
closing agent will record the necessary instruments to give the
buyer legal ownership of the property.
Closing costs must also be paid. Closing costs vary widely
depending on the home’s price tag, location and other factors.
Overall, the costs will probably be between 1 and 3 percent of
the sales price.
There are standard documents and exhibits that are commonly
required for a loan closing. Some of these will be your
responsibility. Some of these will be the responsibility of
other parties to the transaction, such as the homebuyer and
lender.
Title Insurance Policy
Homeowner's Insurance
Survey or Plot Plan
Water & Sewer Certification
Flood Insurance
Certificate of Occupancy or Building Code Compliance
Letter
Final Walk Through
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