"Closing"
refers to the meeting where ownership of the property is legally
transferred to the buyer. It is a formal meeting in which most
parties involved in the buying/selling process will attend.
Closing procedures are usually held at the title company's
office or lawyer's office. Your closing officer coordinates the
document signing and the collection and disbursement of funds.
Your agent will generally be present at your closing to read the
documents on your behalf, answer any questions, or help to
resolve any last minute or unexpected details that may come up.
In order
for the closing to go smoothly, each party involved should bring
the necessary documentation and be prepared to pay any related
fees (closing costs). There may be more than one form of
acceptable payment for your closing costs so ask the closing
officer which form of payment will be required and to whom it
should be made out. Closing costs will generally total an amount
equal to 2 to 3 percent of the total loan value not including
down payment and the buyer's escrow account.
Sellers
sometimes pay for a portion or all of the closing costs,
depending on local market conditions, terms of the purchase
contract, and the seller's cash and timing considerations. Any
such concessions should be acknowledged in writing. Most lenders
will allow a credit from the seller to the buyer for the non-recurring
closing costs. However, they usually won't allow a credit that
reduces the amount of the buyer's down payment or any of the
buyer's recurring costs, such as expenses for fire insurance
premiums, PMI, or property taxes.
