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The Closing: Where Cash and Ownership Change Hands

Now it's time for your attorney to order title searches and other final documents required by the bank and to schedule the closing -- the time and place where cash and ownership of the property changes hands.

The closing can take an hour or two and requires the presence of eight to 10 people -- you, your attorney, the seller, his attorney, the bank, its attorney, and the broker. You'll spend the bulk of the time signing documents and endorsing certified checks.

This is where you can expect to shell out the bulk of the cash. Along with the rest of the down payment, you'll have to cover an assortment of fees known collectively as "closing costs." Lenders are required under federal law to give you a "good faith estimate" of all these charges and you should come ready to pay with a certified check. If your bank requires mortgage insurance (which is likely if you aren't putting at least 20% down) you'll also need to pay the first premium. Ditto for homeowners insurance.

Be sure to inspect the home right before you actually close the deal. Make sure it is in good condition and any property, such as light fixtures or built-in bookcases that you were told you would get with the house are still there. All the appliances should work and it should be broom clean. After the closing is over, have the locks changed and the home is yours.

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