10 Step Guide to Buying a House – Step 9
Step 9 – Closing
The closing process is also known as settlement. Closing brings together a variety of parties who are part of the transaction. At closing, transfer taxes must be paid and other claims must be settled (including closing costs, legal fees and adjustments.) In most transactions the closing agent also completed the paperwork needed to record the loan.
What to Expect
Settlement is a process where all of the necessary paperwork needed to complete the transaction is signed. It is typically held in an office setting such as a title company or law office.
Whatever the case, the result is that title to the property is transferred from seller to buyer. The buyer receives the keys and the seller receives payment for the home. From the amount credited to the seller, the closing agent subtracts money to pay off any existing mortgages and other transaction costs. Deeds, loan papers and other documents are prepared, signed and filed with local property record offices.
What You Need To Do
Before closing, buyers typically have a final opportunity to walk through the property to assure that its condition has not changed materially since the sale agreement was signed.
At the closing itself, all papers have been prepared by closing agents. This paperwork reflects the sale agreement and allows parties to the transaction to verify their interests. For instance, buyers get the title to the property, lenders have their loans recorded in the public records and state government collect their transfer taxes.