Closing and Final Details

As your home buying journey comes to its completion, your GMAC Real Estate agent will help you through the final steps to home ownership - the closing process.

Closing is the formal meeting where ownership of the property is transferred from the seller to the buyer. Also at this time, the buyer's loan is finalized, so technically there are two closings. The meeting is usually attended by the buyer and seller, their respective Real Estate Professionals, the lender's agent, and the closing agent (if different from the lending agent).

Preparing for Closing costs
Typically, closing costs are three to six percent of the sales price. There are fees such as insurance on the title to your home, taxes, transfer costs, attorney fees (if necessary) and hazard insurance.

You may also be required to prepay an up-front reserve account of tax and insurance payments to ensure that there are sufficient funds in your account to meet these obligations when they are due. In some cases, the seller will agree to pay closing costs - that is one of those negotiable details.

Before closing
In the days prior to closing, your Agent will work with you to ensure you understand all of the conditions of the sale and loan, and confirm that they have been met. Your Agent will also reconfirm the closing date with you and the sellers.

During this time, your Agent will ensure that you have the opportunity to take a final walk-through of the property just before closing to see that everything is as it should be. If there are any problems or unresolved issues, take care of them before closing.

Closing meeting
The closing agent will review the settlement with you and the seller, along with evidence that any legal requirements, such as insurance and inspections, have been met.

During the meeting you will receive a number of documents, including:

• A HUD-1 Settlement Statement, listing all the services and charges to you and the seller. You may review this form on the business day before closing.
• A Truth-in-Lending (TIL) statement. You will receive this within three days of applying for the loan. It details the actual cost of the mortgage.
• The mortgage note itself. This is your promise to repay the loan, as agreed.
• The deed. Signed only by the seller at closing, it transfers ownership of the property. At first, you may only get a copy; when the actual deed is recorded with the county listing you as the new owner, it will be mailed to you.
• Any other affidavits. For example, an affidavit may state that you will use the property as your principal residence.

Once everyone agrees that everything is in order, and the closing costs are paid by the buyer and, if necessary, the seller, the papers are signed and the keys turned over to you. Once the deed is recorded with your county clerk, you officially become the owner of the property.

Here's the day you've been waiting for. The papers are in order and money has been exchanged. You're handed the keys - the home is now yours!