The Big Day
At the settlement will be an attorney or title company representative (chosen by the sellers), all buyers, listing and selling brokers and all 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 old and new lender instructions. First, all unresolved 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 or certified check. Open Look At Closing Costs "Closing costs" have lost much of their mystery in recent years. Under the Real Estate Settlement Procedure Act, 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; this is particularly true for new housing, where the seller is the builder. Settlement fees vary widely depending on price location and other factors but overall the buyers costs usually average between 3% and 4% of the sales price. Items that are usually included in the settlement fees are the loan origination fee, mortgage insurance premium, EPA fee, underwriting and processing fee, attorney fees, title search fee, owner and lender title insurance, recording fees, and survey fee. In addition the lender will require an appraisal fee and a credit report fee in advance of the closing. A few other items not required to be listed under the law may also have to be paid at a closing. These include advance deposits held in escrow for 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 very from area to area, and transaction to transaction, we encourage you to consult with your Clifford Realtors Associate to determine your exact charges. Sometimes closing costs can amount to a sizable sum, but remember some of the items are tax deductible. The loan origination fee prepaid interest and property tax adjustments may be such items. Signing On The Dotted Line With the seller, the title company representative explains the settlement sheets and gets the sellers signature on them and the deed. Seller pays appropriate closing costs. If the seller's taxes or insurance have been escrowed, the seller will (in most cases) be mailed 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. The seller will receive these funds at or after settlement, depending on the area. Taxes and home owners dues or condominium fees will be prorated on a daily basis. Sellers, brokers, and buyers are supplies a copy of settlement sheets for their records. The House Keys Are Passed. You Are Now The Proud Owner..! Congratulations....! |
