What should you expect as a buyer on closing day?

December 7, 2016

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GENERALLY

 

Closing day is approaching very quickly but you have no idea what to expect! Well, the experienced real estate attorneys at JRQ & Associates are here to help and clear up any confusion! First, there are a couple things you might want to know, including what exactly is a closing? Closing refers to the process of transferring title of a piece of property from the seller to the buyer.

 

Before the closing, the settlement agent will check for red flags in the property’s title—such as liens or skipped mortgage payments by the seller.  Before closing, you will also fill out a loan application if you are not purchasing property for cash. After you submit the loan application, the lender has three days from the time of the loan application to inform you about loan fees.

 

As a buyer, you will be required to sign a host of documents that include: tax forms, affidavits, a mortgage, a promissory note and other lender-required documents. The seller will also be required to sign a warranty deed—this basically transfers title to you and includes a description of the property you are purchasing. A mortgage essentially means that you promise to put your home up (or some other property) as security for your loan, should you be unable to pay it off. Expect to sign a whole host of additional closing disclosure forms so drink as much coffee as you need and have a bottle of water handy to stay hydrated. The last thing you want to do is get into the rhythm of signing the closing documents and not to neglect to read each form thoroughly. 

 

WHAT TO BRING TO THE CLOSING & WHO WILL BE THERE

 

Some of the most important documents that you need to bring to the closing are homeowner’s insurance, a government issued ID and the amount necessary to close.

 

Expect a representative from a title company to be present; as well as the buyer’s attorney, the seller’s attorney and real estate agent. In addition to the various parties that will be at the closing, remember that when everything is said and done you are the person purchasing the property. Therefore, it is extremely important to review the Closing Disclosure, which includes your mortgage payments, the loan’s terms, and additional fees including closing costs—beforehand.

 

CLOSING COSTS

 

Last but not least, do not forget that there are closing costs associated with buying property. Closing costs generally refer to the property costs for both the buyer and seller. Closing costs include recording fees, origination fees, appraisal, notary fees, attorney fees, and title insurance.  Note that if you are purchasing your home with a loan, you should expect to pay a percentage of the total loan amount on closing day—this percentage depends on the state in which you are purchasing your home as well as the type of loan you agreed to. There are so many components that go into closing. To ease that burden and make sure that the closing is done right call 312.561.5063 to speak to an experienced real estate attorney today.

 

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The photographs on the homepage slideshow are attributed and used under the following:  Chicago River © flickr user Mindfrieze under licence CC BY-SA 2.0

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