Buying a Home

Closing Steps

Here are some of the steps taken during and after the closing meeting:

1. The closing agent reviews the HUD-1 Settlement Statement with you and the seller and answers any questions. Both you and the seller sign the settlement sheet.

2. The closing agent asks you to sign the other loan documents, such as the note and Truth-in-Lending Statement . Evidence of required insurance and inspections is also presented - if it wasn't previously given to the lender.

3. If everyone agrees the papers are in order, you and the seller submit a certified check or cashiers check to cover the closing costs and the balance of funds due. The check from the lender covering the mortgage amount is then submitted to the closing agent. If the lender will be paying your annual property taxes and homeowners insurance for you, a new escrow account is established at this point.

4. You receive the keys to your home.

5. After the meeting, the closing agent officially records the mortgage and deed at your local government clerks office or registry of deeds. This legal transfer of the property may take a few days. The closing agent usually will not disburse the funds to everyone who is owed money from the sale (including the seller, real estate professionals, and the lender) until the transaction has been recorded. After the deed has been officially recorded, you formally become the owner of the home.

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