A real estate closing is the last step in paying for your new home. The closing, or settlement, is the point when you and everyone else involved in the mortgage loan transaction signs the official documents. After signing these documents, you as the buyer are responsible for the mortgage loan.
So, what exactly happens on the closing day? Basically, at the closing ownership of a property is transferred from the seller to the buyer. The escrow company disperses the funds, and a new deed is registered in the buyer’s name. The buyer also must submit a check that covers all of the mortgage and title fees that have accrued during the process. At the closing, a final distribution of the funds takes place as follows:
- The sellers get a check for the proceeds they earned from the sale.
- The real estate agents receive a check for their commissions.
- The home buyer provides a cashier’s check to cover all of the closing costs.
On closing day, the home buyer has to sign a lot more paperwork than the seller. The number of times you have to sign may range from 10 to 30 during the closing process. Also, on closing day the buyer or the buyer’s lender provides a check for the amount owed on the purchasing of the property. The seller then signs the deed over to the purchaser, which means that the ownership from the seller to the buyer is now official.