Most people define closing costs as the amounts which are paid to the professionals who
work on the Real Estate transfer and closing. Such costs will include
attorney fees, any charges incurred by the lender in processing your loan,
insurance premiums, property taxes, inspection fees and recording costs.
What Is The Title Insurance?
Title Insurance guarantees that you have “clear title” absolute legal ownership
with no unknown claims or debts against your property. This is crucial to
your lender, as the lender wants assurance that the lien that they have on
the property will always be superior to any other claim.
Your home represents the largest investment that you will make and you should protect
it against title defects. Defects in title include forgeries, deeds by
minors or improper transfers of title. Your title insurance protects you
against loss for as long as you own your home. The premium is paid once, in
full, at closing.
Who Does What for this Transaction?
Lots of professionals will be involved in your closing. The Realtors organize and
coordinate all aspects of the purchase- from signing the contract to moving
day. The lender provides surveyors and appraisers. The title company checks
the legality of the property transfer, prepares all documents and conducts
the closing. It is their job to ensure that all of the conditions set
forth in the contract are met by both Buyer and Seller and that both
parties are satisfied with the transaction.
What Papers will I Sign at Closing?
The majority of the documents that you will sign verify the information that you
gave on your loan application and confirm your understanding of the terms of
the loan.
You will sign a mortgage and note. The Seller will sign a new deed –
transferring the property to you. You both will sign a closing statement
which is an itemized accounting of who paid what to whom.
