Closing on Your New Home
The big day is here! You found your dream home, you made a bid, you waited, did the final walkthrough and now it’s time to close. Closing day can be a whirlwind- everything moves pretty fast and there are a lot of papers to sign before that great moment of getting your keys. While this day can be thrilling, it’s a good idea to beat the anxiety and be confident by being as prepared as possible as to what will happen ahead of time.
At the closing, there will be an attorney or title company representative (chosen by the buyers), all buyers, listing and selling brokers, and all owners. The attorney will have searched the title, provided title insurance, and obtained old and new lender instructions, while the home sellers should bring all warranties on equipment and any instructions on equipment maintenance or operation.. First, all unresolved walk-through deficiencies are resolved.
With the buyer, the attorney will explain the deed of trust or mortgage and note; VA, FHA, or lender forms; and all settlement sheets. The buyer will then go ahead and sign all forms and pay the balance of the down payment and buyer’s closing costs with cashier or certified check. With the seller, the attorney will explain all of the same settlement sheets and get the home seller’s signature on the settlement sheets and the deed. The seller will then pay any appropriate closing costs.
Under the Real Estate Settlement Procedures Act (RESPA), closings costs are no longer as ambiguous as they used to be. The home buyer is given an estimate of closing costs in advance of the closing. Closing costs vary depending on price, location, and other factors, but overall the costs usually average between 3% and 7% of the sales price. Items that are usually included in the settlement fees are the loan origination fee, mortgage insurance premium (M.I.P.), attorney fees, owner and lender title insurance, recording fees, county tax stamps, state tax stamps, and the survey fee. If the seller’s taxes or insurance have been escrowed, the seller will receive any money accumulated in the account for bills not yet due. Additionally, the seller will be reimbursed for any money paid in advance and not used, such as property taxes.
It is a big day, closing on your home – whether it is your first or your tenth – is very exciting! With the right amount of preparation and understanding, you will be able to enjoy the experience even more! Don’t forget to celebrate afterwards! We want to help you have a happy closing which is why at Fairway Independent Mortgage of the Carolinas, we make sure the funds for your home get there early, so you don’t ever have to worry.
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