The Final Step to Homeownership

You and your family are finally ready to move to your new home. Your mortgage loan was approved, your house passed inspection, your belongings are packed and everyone is looking forward to moving day. All that's left is to attend your closing.

What is a closing?
A closing is a meeting that involves all of the parties signing the final documents and legally transferring the property to you. There are costs and fees in this final step of which you need to be aware. This section will walk you through the entire process. When you are finished signing the closing documents, you will be given the keys to your new home. The mortgage process is now complete and you are officially a homeowner.

Who Will Be There?
Usually, the closing takes place at a title company or an escrow office. The following individuals should be there or be represented:

• You and any co-borrower (such as your spouse),
• if they're involved with the transaction
• Escrow officer
• Closing agent
• The sellers real estate agent
• Your real estate agent

The thing you'll probably remember most years later is how many times you had to sign your name. There are lots of documents that need your signature.

Here's an overview of what will happen:

• You will sign a promissory note indicating that you have accepted the mortgage loan from your lender and agree to repay the amount borrowed, plus interest. You also will sign a security instrument which pledges your home as collateral for the loan. In some states this document is a mortgage and in other states it is a deed of trust.
• At closing, your lender will transfer the money to the seller on your behalf. The seller will then sign a document called the deed, transferring ownership of the property to you.
• The title company or settlement agent will prepare all the documents and make sure that they are properly recorded.At closing, your lender will transfer the money to the seller on your behalf. The seller will then sign a document called the deed, transferring ownership of the property to you.
• Additionally, there will be a number of affidavits and declarations for you to sign. These legally binding documents spell out the financial obligation you are taking on and your rights as a homeowner. Make sure you understand what you are signing.

It is important to read the documents carefully. Don't hesitate to ask questions. Sometimes real estate professionals will go over the documents in detail before the actual closing, so you are comfortable with the process. If that seems like a good idea to you, by all means ask your real estate professional to spend time with you explaining the paperwork