Finally the time has come! You will be joined at settlement by your attorney or title company representative, the listing and selling brokers, and all owners. The attorney will have reviewed the title, provided title insurance, and obtained old and new lender information.

After all issues are resolved the attorney will explain the following:

Deed of trust or mortgage
Deed of trust note or mortgage note
VA, FHA, or lender forms
Settlement sheets

You and the seller will then sign all necessary documents. You will also pay the balance of the down payment and buyer’s closing costs with a cashier’s or certified check.

Open Look At Closing Costs

Prior to settlement, you will be given an estimate of closing costs by the lender under the Real Estate Settlement Procedure Act (RESPA). In addition, the lender will require an appraisal fee and a credit report fee in advance of the settlement.

Closing costs can average between 2% and 10% of the sales price. Closing costs usually include the following:

Owner and lender title insurance
Loan origination fee
Attorney fees
Mortgage insurance premium
Recording fees
County tax stamps
State tax stamps
Survey fees

In particular instances, some of the closing costs may be paid by the seller. This is mainly true for new housing, where the seller is the builder.

Other expenses which aren’t required to be listed under the law may also have to be paid at closing. These expenses will include the advance deposits held in escrow for real estate property taxes and insurance. The lender collects a fraction of these monthly and then pays the insurance and taxes when they are due.

Your closing cost may be expensive. Keep in mind that some of the items are tax deductible. The loan origination fee, prepaid interest, and property tax adjustments may be such items.

Congratulations
Once the house keys are transferred, you are the proud owner of your new home. Congratulations and enjoy your new home.