Closing Costs

Assuming the inspection turns out well, the financing is going through to your satisfaction, and all other contingencies are met, you're now in the home stretch. Your attorney will do due diligence, which includes a title search to determine if the seller does indeed hold the title to the property and there are no other legal claims against it. This along with the home inspection will complete the due diligence package

When you're finished, you can look forward to a good night's sleep in your new master bedroom!

If everything is clear, then you're ready to sign what may seem like the largest stack of documents you've ever seen! It is at the closing that the title to the property will be transferred to your name, your homeowners' insurance (which you have to have already secured) begins coverage of the property and you are officially committed to your mortgage. It is, unfortunately, also time for you to plunk down your cash for the down payment and closing costs. You should be able to get a copy of the settlement statement that includes the amount of cash you'll need at closing from your lender a day or two prior to the closing. Knowing these costs is important since you'll need to pay your down payment (and usually your closing costs) with a certified check.

You'll be signing lots of papers, including:

• The settlement statement
• The sales contract
• Title insurance
• Homeowners' insurance
• The title or deed to the property
• The down payment and closing costs

There may be additional documents to sign depending on the complexity of the deal, so be prepared and block out appropriate time for everything.

For more information on buying a house, including credit reports and mortgage information, check out the links on the following page.