The closing process, also called settlement, is a brief process where you sign all of the necessary paperwork to complete the purchase of your home. This is when the title to the property is transferred from the seller to you. Then you receive the keys to your home and the seller receives payment for the home.

Deeds, loan papers, and other documents are signed at this time, then they're filed with local property record offices. As of closing, all utility bills should be paid in full by the seller. Now services are transferred to your name for billing. Go to Local Service Providers to obtain the phone numbers for utility companies, such as water, sewage, gas, and electric.

Be prepared to submit earnest money to show your commitment, which goes into an escrow account until the transaction is complete, at which time it will be returned to you.  

Here are some typical buyer closing costs ...

Inspections: you may have already paid these costs - if not, they are paid at closing. Inspections may include: home, radon, mold, lead-based paint, termite, septic tank, etc.

Title Insurance: pays to research who legally owns the property and protects you and the lender against loss or damage if someone should challenge your ownership.

Lender Fees: these are the funds charged by the company originating your loan to cover their costs associated with creating, processing, and closing your mortgage, as well as prepaid escrow charges for interest, insurance and taxes.

First Year's Homeowner's Insurance: your lender will require proof that you have adequate homeowner's insurance - you may be required to pay the first year's premium.

PMI: Private Mortgage Insurance may be required by your lender if you put less than a 20% down payment on your home.

Attorney Fees: your attorney, representing your legal interests at closing, including verifying a clear title and collecting/dispersing of funds.

Property Taxes: these are based upon the tax rate and tax value of your home.

Miscellaneous: Fuel left in tank by seller; prorated share of homeowners association dues, home warranties purchased by buyer.

In a typical home purchase, closing costs equal about 2 to 5% of the purchase price of the home. You don't want to be caught short at this important time. Be sure to email us with your questions!