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Prepare for the Closing Day - Helpful Tips you should not Miss

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By : Flynna Jones    99 or more times read
The closing day in real estate sector is the most unexpected event in every transaction but very important. This is when the contract signing, counting the number of persons who will attend and computing the closing expenses will happen. During this day, there are so many things that will occur. It is best to know them one by one.

There are a lot of people who will be there in the meeting. They are the seller, buyer, legal counsels of the two parties, real estate brokers, the lender or any representative and the closing agent. This normally takes an hour or so. And it is the closing agent that facilitates that activity. But if there will no closing agent on this day, the closing agent, the Escrow agent or any legal counsel can take over.

Included in the closing day activities is the reviewing of mortgage papers. All these papers should have the signatures of the seller and buyer. Get a copy of homeowners insurance and other inspections so you can have enough proof. Aside from that, the submission of the check settles all the closing expense and down payments. There are lenders who will entice the homeowners to get an Escrow account. This will include the property tax, insurance and monthly amortization. This is for security reasons. As soon as the closing is done, the seller can now hand the keys over to the homeowner.

Before signing the contract, you have to completely understand the context of the agreement. This may include the HUD-1 Settlement statement, deed of sale, promissory note and insurance, taxes and interest. The HUD-1 Settlement statement is a document that presents all the fees and credits for the seller and buyer which all depends on the content of the contract. Alternatively, deed of sale has the property liens for your monthly amortization. The promissory note showed the commitment of the buyer to settle is payables to the lender at a given period of time. For the insurance, taxes and interest, this talks about the payment of property taxes, insurance and monthly amortization.

For the closing expenses, the HUD-1 Settlement statement will be given to you before the start of the meeting. You can now assess the GFE or good faith estimates if they are reasonable enough. Lenders will show the difference between the GFE and the statement you have seen.

During the closing day, you will know the entire expense together with the HUD-1 Settlement statement. Preparing for the closing costs will surely help you in terms of handling your budget. In fact, you can even have more savings if you already know the amount that you need beforehand. Usually, most homeowners go over their budget since they neglect to include the closing costs in their finances. Hence, they get broke in the end. By doing early preparations, you can have a more relaxing and peaceful closing day.
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