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What Happens at Closing is no Big Mystery or Secret

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By : marco benavides    99 or more times read
Many people wonder what happens at closing, and the fact is that it is not a secret or mystery. Closing can be done formally or informally, and it all depends on the area of the country where you live. There are general practices and procedures that are followed sometimes as a matter of custom rather than necessity. You actually will not meet with the lender and seller in some areas of the country. An escrow agent is the person who will conduct the signing and ensure that the money goes to the seller. In other areas of the country, the signing takes place at a title or escrow company, and in other parts of the country the signing takes place at an attorney's office. In those areas where closing takes place at an attorney's office, all parties are usually present for the signing.

At closing, the buyer will deposit any money that he/she owes into escrow and then sign the loan and escrow documents. The seller will sign the closing statements, the deed and then get the check for whatever money may be due. The buyer will also sign the mortgage documents and the deed in order to take possession of the home. Depending on local practices, the buyer may actually have to wait a couple of days before being able to move in. However, once the documents are signed and the deed and mortgage are recorded in the state Registry of Deeds, the home has changed hands.

You are going to be signing a lot of paperwork at closing, but you should not let this distract you. If you become distracted, you may overlook something that is really important. The money that you will be paying is in the hundreds of thousands of dollars, so you need to make sure that the math is correct. You do not want to end up paying more that what was agreed upon.

You will be signing the mortgage at closing, and you need to really understand this document. You are signing an agreement to pay back the money you are borrowing to buy your home at a specified interest rate. If you should fail to pay back the money, you are agreeing that the lender may take your home and sell it to repay anything and everything you owe, including the costs that the lender may have incurred in the foreclosure process.

Go over everything one final time at closing just to make sure things are as they should be. If you are not careful, you may overlook any liens or encumbrances that were discovered through the preliminary report of title insurance. You also want to be sure that you get the exact and legal description of the property you are purchasing. You have to make sure that your vesting is correct because it is very time consuming to correct a vesting on a deed at some later point in time. You should take your time because when all of the paperwork is done, you will be the owner of the home.
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