9.CLOSING ON THE HOME
"Closing" refers to the meeting where ownership of
the property is legally transferred to the buyer. It is a formal meeting in
which most parties involved in the buying/selling process will attend. Closing
procedures are usually held at the title company's office or lawyer's office.
Your closing officer coordinates the document signing and the collection and
disbursement of funds. Your agent will generally be present at your closing
to read the documents on your behalf, answer any questions, or help to resolve
any last minute or unexpected details that may come up.
In order for the closing to go smoothly, each party involved should bring
the necessary documentation and be prepared to pay any related fees (closing
costs). There may be more than one form of acceptable payment for your closing
costs so ask the closing officer which form of payment will be required and
to whom it should be made out. Closing costs will generally total an amount
equal to 2 to 3 percent of the total loan value not including down payment
and the buyer's escrow account.
Sellers sometimes pay for a portion or all of the closing costs, depending
on local market conditions, terms of the purchase contract, and the seller's
cash and timing considerations. Any such concessions should be acknowledged
in writing. Most lenders will allow a credit from the seller to the buyer
for the non-recurring closing costs. However, they usually won't allow a credit
that reduces the amount of the buyer's down payment or any of the buyer's
recurring costs, such as expenses for fire insurance premiums, PMI, or property
taxes.
