So you are purchasing your first home. How exciting! You’re close to signing on the dotted line and you couldn’t be more excited. Although your realtor and your lender have walked you through all the paperwork, there are still some things that somehow never come up. Below we have outlined some of the most common parts of closing on your home that no one tells you about. Hope this helps you navigate the final details.
Signing all the legal documents actually involves two categories. One is the agreement between you and your lender, a.k.a. your loan. This agreement is the promise to make your mortgage payments, for the number of years you have agreed to do so. The other is the agreement between you and the seller; the agreement that transfers actual ownership of the property to you. Both sets of documents are important, so make sure you read everything carefully before you sign.
Your lender has probably mentioned this to you several times and has hopefully prepared you with the dollar amount you will need to bring with you to closing on your new home. These costs are fees and escrow items associated with the loan and the property transfer. The amount is usually in the thousands of dollars and can also include your down payment. Be prepared, as you will need guaranteed funds like a cashier’s check or a wire transfer.
Who is at Closing
There can be tons of people present at your closing. Not all the folks listed will be there, but they could be. The requirements are vary from state to state.
- Closing agent, who might work for the lender or the title company.
- Attorney: The closing agent might be an attorney representing you or the lender. Both sides may have attorneys. It’s always a good idea to have an attorney present who represents you and only you.
- Title company representative, who provides written evidence of the ownership of the property.
- Home seller.
- Seller’s real estate agent.
- You, also known as the mortgagor.
- Lender, also known as the mortgagee.
The closing agent for the title company conducts the settlement meeting and makes sure that all documents are signed and recorded and that closing fees and escrow payments are paid and properly distributed.
No Need to Practice Your Signature
Finally, you may need to go easy on the high fives for a little bit after you sign and initial the sections of what can be a several hundred page document. You will definitely end up with a MOUNTAIN of documents, which can often be overwhelming. Take your time and go through each one at a pace that is comfortable for you. Don’t let anyone pressure you into signing something you have not thoroughly read and ask all the questions. You will be in a room of professionals, with some of the most knowledgeable people in the local industry; so don’t be shy about asking questions along the way.
Once you’re finished you will be one of the many Americans, enjoying the dream of home ownership fulfilled. Congratulations on your home purchase! Let RMCU know if they can help you along the way!
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