Pest and Termite Control

What is closing in real estate?

Closing is a real estate term that involves the transference of ownership of a property from the seller to the buyer. Things done during closing involves clarifying any complex controversy, example balancing and verifying closing statement, signing of documents necessary for the buyer and seller to complete the transaction.

The process to go through when closing:

The cost of loans:

As you apply for loan, you should get acquainted with the costs of the loan you are applying for. Normally the lender will send you a document called 'Good Faith Estimate' within three days of your application. This document will list out the costs of the loan for your peruse, so that there won't be any case of hidden cost.

A settlement agent: after you have agreed with the loan cost, you are expected to search for a settlement agent, who can be an attorney or an escrow company. He would be expected to man the whole closing event. And if you plan paying an up-front, the money will be deposited in an escrow account by the settlement agent.

The title of ownership:

 The settlement agent should ensure that the title work is thoroughly done. This involves searching the public records for information related to the title of the house. This is to be sure that there are no flaws concerning the title. Flaws like owing taxes to the local or state. Or having pending mortgage debts or the property is on lien. These or more errors are to be corrected by the settlement agent before the transfer of ownership. Apart from these roles the settlement agent can also have engage in property inspections-example like termite inspection.

 Documents required for the buyer and seller to sign during closing.

HUD1

This document is prepared by the settlement agent and both buyer and seller are expected to sign appropriate forms. The document itemizes the costs incurred during the closing process. The cost is normally within 2-5% of the estimated amount of the house and it includes various mini costs like;

• Attorney fees
• Escrow fees
• Property taxes to cover the period to the closing date
• Interest from the closing date to one month before the first monthly payment
• Loan origination fees
• Recording fees
• Survey fees
• Mortgage insurance, if applicable
• Title insurance, both for the buyer and the lender
• Loan discount points
• The first escrow payment for future real estate taxes and insurance
• Homeowner's insurance policy payment or receipt
• Appraisal fees
• Pest or other specific inspection fees
• Document preparation fees

Affidavits:

This is another document you will be asked to sign during the closing of the transaction example affidavit of occupancy.

The Deed:

At the closing the buyer is expected to receive the deed signed from the seller. This deed shows that the transaction has been finalized and ownership has been transferred to the buyer. The closing agent then records the deed with the buyer listed as the new property owner. The deed will be sent to the buyer after it is recorded.

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