This is it -- the day you close on your home. This is when all parties sign the papers and
formally close the deal. Then, ownership of the home is transferred to you. It's also your
last chance to change anything you don't like about the transaction.
Keep in mind that closing procedures vary, even within the same county. Your attorney or the
closing agent can verify the procedures for your closing.
Joining you around the table at this closing, or settlement meeting, will usually be the
following:
- The closing agent, who may work for the lender or title company, or may be an
attorney representing you or the lender. In western states, it is often the escrow agent who
handles the closing.
- The seller
- Attorneys for both sides
- A title company representative
- The seller's real estate agent
The closing agent conducts the settlement meeting and sees that all documents are signed and
recorded, and that closing fees and escrow payments are paid and properly distributed.
Documents To Be Signed
- HUD-1 Settlement Statement: A detailed list of all costs related to the sale
of the home. It is signed by you and the seller, who may be paying some of the closing
costs.
- Truth-in-Lending Statement: You received the first version of this statement
after applying for your mortgage. It outlines the cost of your loan including the annual
percentage rate (APR), which includes any points and fees. The interest rate calculations
can change by closing date. This is the final Truth-in-Lending statement.
- Mortgage note: This is a legal document stating your promise to repay the
mortgage. It indicates the amount and terms of the loan, and what the lender can do if you
fail to make payments.
- Mortgage or Deed of Trust: This document secures the note and gives your lender a
claim against the home if you fail to live up to the terms of the mortgage note.
- Certificate of Occupancy: If you are buying a newly constructed house, you need
this legal document to be allowed to move in.
Just one more thing: You are handed the keys. Congratulations on now owning your new home.