This is one of the most commonly asked questions when it comes to
real estate. It is basically the last step to taking ownership of your
new property. It is a process which allows a third party to sit down
with all the parties involved with the sale and go over all the details.
There are many questions people ask about closings.
Who will be at the closing?
In San Diego, the closing is handled by the escrow and title company.
All paper-work is in order prior to the actual closing day and so, at
the closing day no one actually shows up. But, for many other locations,
things are quite different. There, the closing agent will be there to
manage over the closing. He may work for the lender or the title office
and is usually an attorney. The other people present will be the buyer
and seller, who may bring their attorneys, and the real estate agent
handling the sale. The title company will also send a representative who
can provide the evidence of a clear title. The lender will also be
present.
How long is the closing process? The closing process is actually the
shortest meeting during the whole buying process. It normally only takes
about an hour from start to finish.
Do I get the keys to the house at the closing?
Under normal circumstances, the keys will be presented to you by the
seller at the end of the closing. There may be stipulations which enable
the sellers to stay in the home for a set period of time. This will have
been decided when the purchase agreement was signed.
What happens at the closing?
This is where you will be signing the final documents concerning the
purchase of your new home. This will consist of the Truth in Lending
Statement. This is also referred to as a Regulation Z. The lender must
present this so you know exactly what the interest rate is and what the
entire amount of the loan is going to be. This paperwork will allow you
to see the total cost of the loan, the interest rate, the amount
borrowed, and the annual percentage rate.
You will also sign the note and the mortgage. The note is the actual
paperwork that states you are borrowing X amount of money and plan on
paying it back in the terms written therein. The mortgage is the lien on
the property you are purchasing.
The warranty deed will be given to the buyer and the seller to sign. The
signing is the transfer of ownership.
You will also be requested to sign, along with the seller, a proration
agreement which states how the money owed for taxes and such is going to
be paid the month of the closing.
The abstract will also be a part of the closing paperwork. This is the
history of the property, on paper. This will consists of prior sales and
any other important information about your new home.
There will be an affidavit which states you are who you say you are and
you can prove it. This will need to be signed as well.
Of course, one of the last papers you will sign is the one stating you
have seen all these other papers and have a copy of them.
The closing may seem tedious. It is worth the effort when you are able
to walk into your new home and know it belongs to you.
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