Know The Facts About Your Closing CostsBy Debbie Wilson
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With your mortgage financing in place, you'll soon be proceeding to the closing phase. And while many individuals simply consider this aspect of the new home loan process a formality, there are some extremely critical mortgage documents you'll be required to sign. Do you know what they mean and are you ready?
Preparing For The Closing CostsOn a typical new home loan mortgage, the closing phase, also known as the settlement, usually takes place between 30 and 90 days after the purchase and sales agreement has been ratified. Your lender will determine who your closing agent will be (title company, real estate broker, lending institution, attorney, or escrow agent). But regardless of who that individual is, make sure the closing occurs before your commitment letter expires and while your interest rate lock-in is still valid.
What Are Closing Costs?You may sign a wide variety of documents upon closing, however among them all, three can be considered extremely critical:
Promissory note -- This specifies the terms of your agreement with the mortgage lender and terms for repayment.
Mortgage -- This document asks you, the borrower, to pledge your property to the lender as security for the repayment of the amount borrowed on the new home loan.
Deed -- This document transfers ownership of property from seller to buyer.
You and the seller will most likely determine who'll pay each portion of the closing costs. But once all parties are in agreement, not only will you be the proud owner of a new home loan, but the owner of keys to your American dream!
About the Author
Debbie Wilson owns and operates a lakeside resort. Her previous experience includes profitability consulting for a national healthcare company. Debbie holds a B.A. in Business Management with a minor in Physical Education.
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