STEP #9 Close on Purchase

Congratulations! You have made it! At this point you should have received loan commitment with clear to close from your lender. Closing day is the day where ownership of the home is officially transferred from the seller to you the new home buyer. The signing of the legal documents normally take place at the settlement/Title company and meeting takes about one hour.

Before Closing

• Work with you agent and schedule final walk through on the day or before the day of closing. Complete a final walk-through to make sure all is as it was when you made the offer to purchase.
• Get the Cashier’s or Certified Check for the closing cost and down payment that you need to bring at the closing.

At the closing table, you should receive:

• Settlement Statement also called HUD-1 Form (itemized list of all related closing costs)
• Truth-in-Lending Statement
• Mortgage Note
• Mortgage or Deed of Trust
• All other documents required by your lender

The following steps explain what happens during and after the closing meeting:

• First, the settlement  agent reviews the settlement statement (HUD) with you and the seller and answers any questions. Both you and the seller sign the settlement statement.
• Then, the settlement  agent will go over and asks you to sign the other loan documents, such as the mortgage note, mortgage deed and the Truth-in-Lending statement. 
• Seller will sign his/her part of the required documents.
• After that, if everyone agrees and signs all documents, you  submit a certified or cashier’s check to cover the closing costs and down payment.
• Next, if the lender will be paying your annual property taxes and homeowner’s insurance for you, a new escrow account (or reserve) is established at the time of closing.
• Finally, you receive the keys to your new home.

After the meeting, the settlement agent send proper documents to officially records the mortgage and deed at your local government clerk’s office. This legal transfer of the property may take a 24 hours after closing or more than 24 hrs if the day after closing is a holiday. The settlement agent usually will disburse the funds to everyone who is owed money from the sale including the seller, real estate brokers, and the lender  once the transaction has been recorded.