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What To Do? A Buyer’s Guide to the Home Closing

Because most people do not buy houses very often, they may feel a little nervous about going to the closing. First, let me say that the closing is nothing to be nervous about. All the hard work is done. Now you just have to sign the paperwork.

So let’s talk about what is going to happen at the closing. The first thing the closing attorney is going to ask for is your driver’s license or other picture identification. The identification must be government issued and it must have your picture on it. So don’t forget your ID!

Next you will sit down with the seller, agents, loan officer and closing attorney to sign documents. The first document you will review is the settlement statement. This is the statement of all your charges, such as closing costs and purchase price, and your credits, such as seller-paid closing costs and your loan amount.  You will usually  have the opportunity to review the settlement statement with your loan officer and real estate agent prior to the closing.

The closing attorney will then review with you all the other documents in the loan package.  These include the note, security deed and truth-in-lending.  The note will have your loan amount, interest rate, due date and principal and interest payment on it.  The security deed is the document that gives the lender its interest in your property.  And the truth-in-lending or TIL shows your annual percentage rate.

One other note about the closing:  most closing attorneys require that down payment funds be wired to their account.  In the past, closing attorneys would accept certified bank checks.  However, more and more attorneys are requiring wires.  Before you get your funds, make sure you ask your loan officer or real estate agent what the closing attorney requires.

Elizabeth Lewis, Attorney



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