Settlement or Closing Day

Tonight you can celebrate, but today there will be a lot of paper signing and a passing of the keys (don’t forget the garage keys and electric door openers).

At the settlement will be an attorney or title company representative (chosen by the buyers), all the buyers, Listing Agent, Buyer's Agent, and all the owners. The home seller should bring all warranties on equipment and any instructions on equipment maintenance or operation.

The attorney will have searched the title, provided title insurance, and obtained seller and buyer lender instructions. First, all walk-through deficiencies are resolved.

With the buyer, the attorney explains the deed of trust or mortgage; the deed of trust note or mortgage note; VA, FHA, or lender forms; and settlement sheets. Buyer signs all these and pays the balance of the down payment and buyer’s closing costs with cashier's check.

Open Look At Closing Costs
Under the Real Estate Settlement Procedure Act (RESPA), the home buyer is furnished an estimate of closing costs by the lender, in advance of the closing. In some cases, some of the closing costs may be paid by the seller.

Settlement fees vary widely depending on price, location, and other factors, but overall the buyer’s 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 (MIP), attorney fees, owner and lender title insurance, recording fees, county tax stamps, state tax stamps, and the survey fee. In addition, the lender will require an appraisal fee and a credit report fee in advance of the closing.

The buyer will also need to escrow real estate property taxes and insurance. The lender collects a portion of these every month and then pays the insurance and taxes when they are due.

Because specific closing costs vary from area to area, and transaction to transaction, please contact us. Sometimes closing costs can amount to a sizable sum.

Taxes and homeowners association dues or condominium fees will be prorated on a daily basis. Seller, buyer, and brokers are supplied a copy of settlement sheets for their records.

The house keys are passed. You are now the proud owner! Congratulations!