Closing the Loan |
The end of the road -- funding your loan -- is the satisfying conclusion to the process of getting a loan.
The end of the lending process is usually called "settlement"
While at settlement you will read and sign numerous documents relative to the purchase (or refinance) of your property. Several of these documents will be familiar to you as they were provided to you in the initial package you received from the lender. Your settlement agent will be able to answer any questions you may have regarding these documents.
Most settlements take an hour or less to complete depending on the transaction.
The more you understand about your closing, the better prepared you'll be for the costs of buying a home. This section covers some basic information about:
1. The closing
2. Who's Involved
3. Closing costs
4. All those closing documents
The closing
The closing is
usually a formal meeting attended by the buyer, the seller, the listing agent and
selling agent,
and the settlement agent. Depending on where you live, the settlement agent could be
your attorney, an escrow agent, your lender, the title insurance company or the real
estate broker.
Visit our Closing Checklist page for a typical list of "to-do’s" at closing..
At the closing, be sure you know what you're signing and that you receive a copy of all documents involved in the closing. Hire an attorney to represent your interests in this important transaction.
Who's Involved
A number of people will be involved in and/or present at your closing including your attorney or closing agent, lender’s representative, and your real estate agent/broker. Click here for more information about various real estate professionals.
Closing costs
Closing costs are the fees you pay for your mortgage loan, transfer of title, various inspections and related expenses. These charges vary based on the locality and the particular transaction. Some of these charges include:
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These costs are usually paid by the buyer, but local customs vary,
and it's possible to have an agreement where the seller pays some
or all of the closing costs. The seller generally pays the real
estate agents' fees. Read more about these costs on the Closing Costs page.
All those closing documents
The main activity in a closing is reading and signing papers. You'll be asked to sign legal documents that record your promise to repay your loan and give the lender rights to the house if you are unable to pay.
While the settlement agent can help you understand the documents you sign, you'll certainly want your attorney at your side, to read the documents with you and represent your interests. You'll be asked to sign numerous documents and affidavits. Read our Closing Docs page for descriptions of some of the most important documents you will see.