Buying a house is an exhilarating and life-changing event, whether it’s your first home or one of many. But how can you make certain you’re prepared for the big event?

Preparation and Communication

Careful preparation and ongoing communication with your agent and lender are crucial for facilitating a smooth closing experience. Ensuring you have all of your necessary paperwork and documentation organized and ready to submit to your lender and title agent when needed helps minimize delays in loan approval, and ultimately the closing process. It’s highly important to respond to any lender or title agent requests for information as quickly and thoroughly as possible.

Review the Closing Disclosure Form

The Closing Disclosure (CD) Form is a document submitted to you by your lender at least three business days prior to your closing date. (The CD Form replaces the HUD-1 settlement statement, formerly used for real estate closings prior to August 1, 2015.) This important document outlays the terms of your mortgage, payment amounts and other financial details related to your home loan. Careful review of your CD Form is crucial, as this reflects the information that will appear on your final closing documents. Any discrepancies or questions regarding this form should be resolved and answered prior to sitting at the closing table.

The Day of Closing

It’s extremely helpful to have an idea of what to expect, and what to bring, when the big day finally arrives. To help you prepare, we’ve created a list of what you need to bring to your closing:

• Government-issued photo ID
• Any paperwork required by your mortgage lender
• Certified check in the exact amount of down payment or wire transfer information

Homebuyers and sellers have different closings, as both parties rarely sit at the closing table together. A homebuyer’s closing with our team typically lasts around 30 minutes, unless it involves a Power of Attorney (in which case, requires additional time). Be sure to ask the closing agent any questions you may have as you go through the documents in your closing package. Upon signing the final documents and receiving your keys, you’re free to visit and move into your new home right away!

Have other questions about a homebuyer’s closing? Contact the Linear Title & Escrow team today!

Buying or selling a home is a major event in the lives of many Americans. Whether you are purchasing your first home or sitting on the seller side of the closing table, understanding your financial responsibility in the real estate transaction is important to ensuring you know what to expect from the process.

Preparing for a Home Closing

As the homebuyer, you will be informed of your closing costs on the CD (Closing Disclosure) Form, which is a document provided by the lender listing details of your loan, payment amounts and total closing costs for your purchase. Your lender will remit your CD form to you for your review at least three business days prior to your closing date. It is highly recommended that you review this document thoroughly, and ask any questions regarding its content or resolve any discrepancies prior to closing day.

What to Expect as the Buyer

In general, closing costs for homebuyers average between two and seven percent of the sale price. Closings costs for homebuyers typically include the following:

• Mortgage origination fee (if applicable)

• Loan discount points (if applicable)

• Mortgage insurance (if applicable)

• Prepaid mortgage interest

• Homeowner’s insurance

• Home appraisal fee

• Property taxes

• Transfer taxes

• Recording fees

• Title search fee

• Title insurance (Owner’s and Lender’s)

• HOA fees (if applicable)

• Survey (if requested)

• Other closing/escrow fees

What to Expect as the Seller

Even though you’re selling your home, you can still expect to pay some amount of closing costs, with the bulk of the financial responsibility deriving from the real estate agents’ commissions. Seller’s closing costs typically include:

• Loan payoff

• Real estate commission

• Home repairs (if applicable)

• Property taxes

• Title transfer and recording fees

• Closing credits to buyer (if applicable)

• Settlement fees

• Deed preparation

• Courier fees

• Agent administrative fees (if applicable)

• Other closing fees

Have other questions about closing costs or the settlement process? Contact the Linear Title & Escrow team today!