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Information Needed Before Closing

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By : Sonia Smith    99 or more times read
Closing is the last chance to make sure that everything involving the purchase of a home is correct. After the negotiations have been completed, the inspection done and the mortgage has been applied for, the emphasis now turns to the closing or the escrow. Understanding the basics and the parties in the closing will help eliminate many uneasy hours as the day approaches.

The process of closing differs from place to place. In some areas, both buyers and sellers have to attend the closing while in other places, only the buyers are required to attend. The closing usually takes place in the office of the Attorney or the Escrow or Title Company. In general, buyers should attend the closing along with their agent and the closing agent who will give instructions on the signing of the pertinent documents.

For a homebuyer, the forms needed during the closing are the following: Statement of Settlement, the contract, loan documents, homeowner’s insurance, title insurance title or deed of the home and the costs of closing and down payment needed. The most important items needed before closing are the settlement statement, cost of closing and certified funds.

Your agent should be able to give you the closing cost estimate at the time of the contract; your lender should also give this to you after you apply for a loan. This will allow you to get an estimate of the money you need at closing.

A copy of the settlement statement should be given to you before closing. Usually this will not be available until at least two days before the actual closing day. Nevertheless, it is important to get a copy so that you will have the total amount of funds that you need during closing. It also allows you to resolve if there are discrepancies before closing.

You need to have certified funds during closing. By making preparations ahead of time will help avoid surprises when everyone is set and ready for closing.

A smart buyer usually tries to arrange a walk-through of the home before the closing day. He or she could bring along an inspector and check if repairs are made and the home is in the promised condition.

A home seller needs the following: copy of pay-off information on the home, which includes the account number of the loan, name and contact details of the lender, payment coupon or certificate copy and a copy of the first page of the security deed, if applicable. It is necessary to anticipate possible problems about liens on the property or outstanding tax bills. On closing, do not forget to bring the home warranty documents, home keys and garage door openers to be handed over to the new owner.

Closing usually takes an hour or even less, if you have prepared for it ahead of time. In case you are a borrower or a homebuyer who will not be able to attend the closing, secure a valid Power of Attorney that your lender will accept. As soon as this document is fully executed, send a copy to the Closing or Escrow Company to ensure that it is executed properly.

Closing is usually an emotional and highly relevant time for buyers and sellers alike. Make sure that you are emotionally prepared before signing any documents for the completion of the sale.
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