What Do I Get At Closing?
When you finally close on a property sale, you are essentially ready to move in and settle into your new home. On closing day, or property transfer day, there are a number of transactions and documents that must be paid or signed to make the transfer legal and fair. Both the buyer and seller need to be present to complete the closing day’s activities.
The Buyer’s Responsibilities On Closing Day
As the buyer, you must show proof that you have paid the homeowner’s insurance policy in full or have a binder and receipt documenting your premium payment. The home must be covered by insurance at all times, even during property transfers. If you have any monetary transactions that are still owed to the seller, including down payment balances or prepaid taxes, they are due in full on closing day. The lender is present to ensure that all transactions are processed correctly, including receipt of their closing costs and fees.
Sellers Have Their Responsibilities Too
Sellers must turn over proof of inspection and any home warranty documents pertaining to the property. If they agreed to pay any outstanding taxes on the property, these funds are due at closing. Prepaid rent, such as the seller living in the property for several days after closing, is due as well to keep the property transfer in effect on closing day.
Signing The Final Documents
You sign many documents on closing day, including the mortgage paperwork that includes the property note. In essence, you are promising to pay a certain amount for the property each month. If you default for a specified amount of time, the lender has the option of selling the home to make up your missing balance, plus any applicable fees. Any questions that are running through your mind should be brought up now. After signing the documents, you are legally bound to the property.
Final Lender Notes
The lender gives you the deed to the home, stating that you are the true owner of the property. This information is public record as the deed and mortgage information is recorded with the state’s registry. You do not typically work with your lender directly after officially becoming a homeowner. Monthly payments are your responsibility, either through direct mail or online charges. It is up to you to remain current on your mortgage balance.
Closing day is a flurry of paperwork and monetary transactions. Take your time and enjoy the process. You can be called a homeowner after the day is done.
