The Closing Process

The Closing Process
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"
http://www.somersetmortgagelenders.com

Somerset Mortgage Lenders and Gregg Marcus strive to keep the public educated with tips meant to make getting your loan as easy and painless as possible. To this end, they have put together this brief article on The Closing Process.

You've found the home you want. You’ve made an offer which the seller has accepted. You've applied for a mortgage, and been approved. Move in day is almost here. There's only one more step - the closing.

The word closing in terms of real estate is the process by which the transfer of property from seller to buyer is finalized. Once your mortgage is approved, a date is set for the closing to take place: called a closing date.

Depending on the state in which the transaction is taking place, the closing process is conducted by one of the following representatives of buyer and seller, respectively.

1 An attorney
2 A real estate broker
3 A lender/loan officer
4 A representative of a title insurance company
5 A representative of an escrow company

In order for a closing to take place, several key items must first be prepared and delivered to the lender in advance

1 Title search and title report
2 Title insurance binder
3 Hazard insurance binder
4 Property survey
5 Inspection certificates - for termites, sewer or septic, and well (where relevant)
6 HUD 1 settlement statement - a list of all credits and charges itemized for you and the seller, according to the terms of the contract

At the time of closing, the borrower signs many documents, most significantly a mortgage/deed of trust and a promissory note. These are loan documents granting the lender a lien against the property you’re purchasing as a way of securing your repayment of the loan. The promissory note is the borrower’s legal promise to pay back the loan. The mortgage/deed of trust is the legal instrument recorded in the local office of public records.

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