It’s highly important to act responsibly and turn in all the required paperwork on time. Ensure you have enough time to review the closing statement; don’t be the reason the signing is delayed. 10 THINGS TO KNOW IF YOU'RE CLOSING ON A HOME FOR THE FIRST TIME
1. Open an Escrow
Once the seller and buyer agree on a purchase price and sign a Real Estate Contract/Purchase Agreement, your earnest money or deposit will be collected and applied to your down payment. This deposit will be put in an escrow account at the escrow company, or attorney’s trust account, in which case it's often called "settlement" rather than "escrow." An escrow is a contractual arrangement in which a third party receives and disburses money or documents for the primary transacting parties, with the disbursements dependent on conditions agreed to by the transacting parties. During this time, the third party is taking care of transactions on behalf of both the seller and buyer. If you are using an escrow service, costs of this service are to be negotiated beforehand. Be conscious of the escrow company’s fees. Some contain unexpected fees you might only become aware of during payments, because they’re hidden. Understand escrow company fees before entering into an agreement.
2. Lock in the Interest Rate
The cost for a mortgage loan is typically expressed as “points” paid to get a certain interest rate. Points are essentially prepaid interest, so the more points paid, the lower the interest rate. One
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