What’s all involved in the closing process? Th e closing process can seem confusing and complicated, particularly for fir st-time buyers, but when compared to other aspects of searching for a home and the home-buying process, it’s actually a brief component, essentially involving the completion of the transaction to which all parties have agreed, based on the contract. Th e main “goal” of the closing process is to transfer the title of the property from former homeowner (seller) to new homeowner (buyer). It includes the need for title insurance, since there could be errors, unreported claims, or other fl aws in the review of the property’s ownership. All usual property transfer taxes must be paid during closing. Further, you need to settle all other claims, including closing costs, legal fees, and adjustments. Th e closing agent is the party who is responsible for drawing up and fin alizing the documentation regarding the home loan. In the majority of cases, both the buyer and seller, along with their agents, are present in a professional o ffi ce setting. Th ey’re committed to the completion of all relevant and required paperwork so the property can o ffi cially be transferred from seller to buyer — the buyer gets the keys to the home; the seller gets the payment. Th en, it’s the closing agent’s responsibility to subtract the funds required to pay existing mortgages and other costs related to the transaction. Th e closing agent must also ensure the deeds, loan documents, and other papers are prepared, signed, and submitted to the o ffi ces that maintain property records. Th is seems like a lot, but there really is little work to be done by you, the buyer — provided you have hired your own agent (this is another reason it’s important to have an agent working on your side) — because closing agents take care of all the necessary documentation required by title companies, lawyers, and lenders. Th e fin al result of the closing process is that the buyer obtains the 88
Powered by FlippingBook