Few things in life are more exciting than buying a new home. Unfortunately, however, the home buying process can be lengthy and stressful. So much paperwork. So much negotiation. So many details to consider. When does it end so you can finally move in?
The Home Buying Institute explains that your closing is the last step of your home buying journey. It is here that the home’s title passes from the seller to you, giving you legal ownership of your new home.
While the exact chain of events that occurs at your closing is specific to your particular real estate transaction, in general, you can expect the following to take place:
- You give a cashier’s check to the escrow agent representing your closing costs.
- Your mortgage lender gives a check to the escrow agent representing the amount of your mortgage loan.
- Your escrow agent then gives a check to the seller representing the portion of the selling price to which he or she is entitled.
- The seller, in exchange, gives the escrow agent the signed warranty deed and the keys to the house if you have not already received a set.
- The escrow agent then gives the signed warranty deed either to you or to the title insurance company representative who subsequently records it in the appropriate Recorder of Deeds’ office and brings or mails it to you.
That’s it. You now legally own the home and can move in whenever you desire.
Your mortgage lender likely will give you a Good Faith Estimate of what your closing costs will entail. He or she will later give you an itemized HUD-1 Settlement Statement when the actual figures become known, usually totaling about 3% of your mortgage loan. You will then need to get a certified check from your bank in this amount so you can present it to the escrow agent at your closing.