10 Step Home Buying Process
Step 9: The Closing
Go to any county records department and you can find property records detailing real estate ownership in your community -- sometimes records that date back hundreds of years.
These records are important because they provide today's owners with proof that they have good, marketable and insurable title to the property they are selling. Equally important, such records enable buyers to provide proof of ownership when they sell.
The closing process, which in different parts of the country is also known as "settlement" or "closing escrow," is increasingly computerized and automated. In many cases, buyers and sellers don't need to attend a specific event; signed paperwork can be sent to the closing agent via overnight delivery. It is common in New York and Connecticut for the buyer to be in attendance and optional for the seller.
In practice, closings bring together a variety of parties who are part of the "transaction" process. For example, while the history of property ownership has been checked, it's possible that the records contain errors, unrecorded claims or flaws in the review itself, thus title insurance is necessary. At closing, transfer taxes must be paid and other claims must also be settled (including closing costs, legal fees and adjustments). In most transactions, the closing agent or attorney also completes the paperwork needed to record the loan.
What to expect
Before closing, buyers along with their agent will do a final walk through on the property to assure that its condition has not materially changed since the sale agreement was signed.
The Settlement is a complicated process, typically one to two hours long, where all of the necessary paperwork needed to complete the transaction is signed. Closing is typically held at the office of the buyers attorney or another mutually agreed upon location. oftentimes with both buyer and seller at the same table, though sometimes with each party completing their papers separately.
At the Closing Table you will find the following people:
- Buyers Attorney
- Buyers
- Sellers Attorney
- Sellers
- Both agents (buyers and sellers)
- Bank Attorney
- Title Closer (agent for the title company)
The Buyers and Sellers sit on opposite sides of the table while the Title Closer sits at the head of the table. All paperwork from both sides funnel through the Title Closer. Though the buyer will be busy signing, it is quiet a remarkable process as numbers are crunched, last minute errors discovered are fixed and more paperwork than you can imagine is shuffled across the table in all directions.
Whatever the case, the result is that title to the property is transferred from seller to buyer. The buyer receives the keys and the seller receives payment for the home. From the amount credited to the seller, the closing agent subtracts money to pay off the existing mortgage and other transaction costs. Deeds, loan papers, and other documents are prepared, signed and filed with local property record offices.
What you need to bring
- Proof of insurance
- Proper ID including Drivers License or other forms of Government Issued ID
- Your Personal Check Book for incidentals
- Certified Funds (the balance of your depositPatiences
- ; as there is a lot of paperwork to be signed
What you need to do
One of the best parts of settlement is that buyers and sellers need to do very little other than signing paperwork and issue checks faster than an ATM spits out cash.
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